The Banten, northwest Java port is being developed as an alternative to Tanjung Priok restricted by the Indonesian capital surrounding it.
CCHL wants to mop up the 31% it does not own at US$1.39 per share, after which it will delist the company from the NZ Stock Exchange. Ownership will then be divided between CCHL and HPH, with CCL having a slender majority. However a port operating company would then be formed with Hutchison owning 50.1% and CCHL 49.9%. This effectively would make the city council holding company the landlord and give Hutchison the operational control.
The importance of this move by HPH is that it would have become the first terminal operator to persuade a local or regional authority to concede operational control to a major outside interest. HPH would then obtain a foothold in the NZ ports scene ahead of any other major international operator (barring a small local involvement from P&O Ports). The CCHL bid formally begins on 8 March.