HONG KONG-listed China Merchants Holdings International (CMHI) is buying Sri Lanka-based Aitken Spence's 30 per cent share in Colombo International Container Terminals, making the Chinese company the largest shareholder with 85 per cent control.
CMHI and Aitken Spence has been joint venture partners in running the Sri Lanka's container terminal operations. Together with CMHI, Aitken Spence was the only bidder for a terminal project worth US$500 million in 2009 under the Colombo South Port Expansion Project, reported London's Containerisation International, adding that the state-run Sri Lankan Ports Authority maintains a 15 per cent golden share, that is, a nominal share that is allowed to outvote all other shares.
China Merchants group chairman Fu Yuning said at a recent terminal ground breaking ceremony CMHI has plans to increase its investment in Sri Lanka and the buyout "was the beginning of many by China Merchants in this country."