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Cosco Shipping Ports, Qingdao Port International ink strategic agreement

Author: Posttime:2017-01-23 11:49:20

Cosco Shipping Ports has announced a plan to acquire shares in Qingdao Port International Co by way of both equity interest transfer and cash.

The transaction will be done via Cosco Shipping Ports’ subsidiary Shanghai China Shipping Terminal Development Co (SCSTD).
SCSTD will subscribe to approximately 1m non-circulating domestic shares in Qingdao Port International at a total consideration of RMB5.8bn ($846.7m), of which RMB3.2bn will be settled by the transfer of a 20% equity in Qingdao Qianwan Container Terminal (QQCT) to Qingdao Port International and the remaining amount will be settled in cash.
QQCT is currently owned as to 49%, 31% and 20% by PTS Holdings, Qingdao Port International and SCSTD, respectively.
Upon completion of the transaction, Cosco Shipping Ports will increase its shareholding in Qingdao Port International from about 2.01% to about 18.41%.
“Upon completion of the acquisition and the disposal, the company will have an increased direct stake in Qingdao Port International rather than investing only in a company which operates a single container terminal in the port of Qingdao,” Cosco Shipping Port stated.
Meanwhile, Cosco Shipping Port also entered into a strategic cooperation agreement with Qingdao Port International to co-invest in overseas terminal projects and to set up terminal project management companies.
“The increased investment in, and the subsequent strategic cooperation with, a major port in China will also strengthen the company’s leading position in the Greater China region, which is in line with the company’s strategy of enhancing control over terminal assets,” Cosco Shipping Port said.
source:www.seatrade-maritime.com
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