HONG KONG, Dec 22 — The business empire of Hong Kong billionaire Li Ka-shing is on the verge of its biggest transformation in decades, with a series of massive deals that could raise over US$21 billion (RM85 billion) in cash and fundamentally reshape the conglomerate for the next generation.

The moves mark a generational shift for one of Asia’s most storied business dynasties as it navigates a new era of geopolitical tension and technological disruption, Bloomberg reported.

The flagship conglomerate, CK Hutchison Holdings, is pursuing three major moves simultaneously:

• An initial public offering of its retail arm, A.S. Watson, to raise at least US$2 billion.
• A potential listing or partial sale of its global telecom operations.
• A massive US$19 billion sale of 43 of its port assets.

The Li family, which controls the group, believes that by selling and spinning off these businesses, they can unlock far greater value than the market currently assigns to the sprawling conglomerate, according to sources familiar with the matter.

The overhaul signals a new chapter for the empire built by the 97-year-old Li Ka-shing, whose uncanny sense of timing and political connections earned him the nickname “Superman.” 

He rode a wave of globalisation to build the world’s leading port operator and a major player in European telecommunications.

His son and successor, Victor Li, now faces the challenge of steering the group through a far more volatile environment, where geopolitical sensitivities and regulatory hurdles loom large.

In recent years, the Li family has found itself on the wrong side of politics, both at home and abroad. 

Once a confidant of China’s top leaders, Li Ka-shing has fallen out of favour with President Xi Jinping, with state media criticizing him for selling assets in China. 

At the same time, his perceived ties to Beijing have raised suspicions in the West, creating political hurdles for his highly regulated businesses.

“Li’s empire was built on intricate political connections,” said Vincent Lam, CIO at VL Asset Management. “That’s not easy for Victor to inherit because the world’s and China’s political environments have changed drastically.”

While the family maintains the moves are purely about maximizing value, geopolitics remains a major obstacle. 

Talks over the massive ports sale have slowed amid regulatory hurdles, particularly after CK Hutchison invited a state-owned Chinese firm into the buying consortium to appease Beijing.

Still, the market has reacted positively to the potential deals, driving a 32 per cent stock surge this year and outperforming the benchmark Hang Seng Index, as investors bet on a leaner, more focused future for one of Hong Kong’s most iconic companies.