Panama officials conduct search at Hong Kong-based CK Hutchison’s local office, says report; shares fall nearly 1%

Panamanian authorities searched a Panamanian office unit of Hong Kong conglomerate CK Hutchison on Thursday, according to a source familiar with the operation.

The pressure on CK Hutchison’s Panama Ports Company (PPC) is unrelated to the government’s decision to cancel agreements that gave the company control of two strategic port canals in Panama, this person said.

The identity of the person was not disclosed because the information has not yet been made public.

CK Hutchison did not immediately respond to a request for comment.

The Panamanian government said in a statement, without naming CK Hutchison as the target of the raid: “This is an independent investigation conducted solely by the Panamanian Public Ministry using its legal powers.” he said.

Shares of CK Hutchison fell 0.9% in early trading in Hong Kong on Friday.

The raid had previously been reported in the local press. Television station TVN showed photos of about a dozen people, some wearing vests with the initials of the Panamanian investigative police, or DIJ, in an underground parking lot that the station said was in Panama City’s upscale Albrook district.

In the footage, some people are seen loading cardboard boxes into the back of the police truck.

The name of the location was not visible in the images and Reuters was not able to independently verify the report.

A judicial official interviewed on a local television station confirmed a search was conducted but did not name the business or specify what items were seized.

Panama’s supreme court recently declared CK Hutchison’s contracts to operate port terminals at the entrance to the Panama Canal unconstitutional, prompting the government to cancel the deals.

The decision sparked a row that has embroiled both Beijing and Washington after US President Donald Trump pressured Panama to reduce Chinese influence on the Panama Canal, which carries about 5 percent of global maritime trade.

CK Hutchison said he found the decision unlawful and was considering taking legal action.