Hong Kong SAR, 24 February 2026: CK Hutchison Holdings Limited (“CKHH”) has been informed that, on 23 February 2026 (Panama time), the Republic of Panama (the “Panama State”) made direct physical entry into the terminals at Balboa and Cristobal operated by CKHH’s subsidiary, Panama Ports Company, S.A. (“PPC”) and took over administrative and operational control of PPC’s terminals at the two ports, also excluding representatives of PPC from the terminals. 
  
The takeover of the two terminals reflects the culmination of a campaign by the Panama State against PPC and the concession contract over the past year.  Over a short period of time on the morning of 23 February, the official gazette of Panama published the ruling of the Supreme Court of Justice of Panama regarding Law No. 5 of January 16, 1997, originally announced on 29 January 2026 (“the Ruling”), and an Executive Decree issued by the President of Panama mandating an “occupation” by the State of “all movable property” of PPC, with the participation of all relevant organs of the State.  Simultaneously, government representatives arrived without invitation to the terminals and informed representatives of PPC that the concession no longer exists and that PPC must cease operations, and instructed that PPC employees would be transferred out of PPC, must not communicate with PPC, and must comply with government instructions, under threat of criminal prosecution.  The State now has control of the terminals. 
  
Based on the referenced publications, statements by officials, and the Panama State takeover of the terminals, CKHH understands that the concession granted to PPC for the operation of the terminals at the ports of Balboa and Cristobal was deemed to be terminated as of 23 February 2026. 
  
The actions and instructions of the Panama State made it impossible for PPC to continue its operations and, consequently, PPC ceased all operations at the terminals at Balboa and Cristobal on 23 February 2026.
  
CKHH considers the Ruling, the Executive Decree, the purported termination of PPC’s concession, and the takeover of the terminals to be unlawful.  The actions by the Panama State also raise serious risks to the operations, health and safety at the Balboa and Cristobal terminals.  None of the actions by the Panama State were advised to or co-ordinated with PPC.  The Panama State is responsbile for harm and damage caused by the confiscatory actions it has taken.
  
PPC and CKHH will continue to consult with their legal advisors regarding the Ruling and forceful takeover, the purported termination of PPC’s concession and all available recourse including additional national and international legal proceedings against the Republic of Panama and its agents and third parties colluding with them, to reserve all rights and recourse against them, in relation to this matter.
  
Ends