Aug 20 (Reuters) - CK Hutchison said on Thursday it had launched international arbitration proceedings against Panama and was seeking damages of more than $1.5 billion for the "destruction" of its investments in the Central American nation.
CK Hutchison said Panama breached an investment protection treaty after a series of measures over the past two years that culminated in the "destruction of the concession contract for the ports of Balboa and Cristóbal and takeover of the port terminals".
"The board
strongly disagrees with the measures taken by Panama in violation of the treaty," the Hong Kong-based conglomerate said.
The conglomerate, owned by Hong Kong's richest man, Li Ka-shing, has been caught in a diplomatic tussle since U.S. President Donald Trump objected to Chinese ownership of ports along the Panama Canal, followed by Panama's cancellation of its port concessions in the country.
Its subsidiary, Panama Ports Company (PPC), will continue pursuing separate international arbitration proceedings, launched in February after the country's top court annulled its licences to operate two Panama Canal ports.
PPC, which for nearly three decades operated the Balboa and Cristobal terminals near the Panama Canal, widened its claims to more than $2 billion in March over what it described as the state's illegal takeover of two port terminals and company property.
(Reporting by Sameer Manekar in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)
