Jan 23, 2012 (LBO) – China Merchant Holdings (International), a Hong Kong listed Chinese state firm, is to up its stake in a container terminal venture at Sri Lanka’s Colombo port by 30 percent to 85 percent with the exit of a private consortium partner. Sri Lanka’s listed Aitken Spence group said it received approval from Sri Lanka Ports Authority, which gave the terminal operation concession and the island’s investment promotion agency to sell its stake to China Merchants.
Sri Lanka Ports Authority also has a 15 percent stake in Colombo International Container Terminals, the concession holder.
Earlier reports said Sri Lanka Ports Authority may try to increase its stake.
Aitken Spence pulled out after a loan promised from China Development Bank for the project did not come through and other consortium partners were asked to loan the money and put in extra equity by China Merchants.