COSCO Shipping Ports Divests Stake in Several Terminals
On September 18, 2019, the port operator inked agreements for the disposal of its interests in Nanjing Longtan Terminal, Yangzhou Yuanyang Terminal and Zhangjiagang Terminal.
It is estimated that COSCO Shipping Ports would get around CNY 2.32 billion (USD 325.5 million), including aggregated consideration under the share purchase agreements of approximately CNY 10.6 billion.
Following the completion of the share purchase agreements, COSCO Shipping Ports will not own interest in any of the abovementioned companies.
“The disposal of interest in various port assets is our response to industrial development and changes in the region,” COSCO Shipping Ports said in a statement, adding that the profit and throughput contribution from the three terminals is small.
Moving forward, the company said it would continue to optimize the terminal portfolio in Yangtze Delta, strengthen the development of Nantong Tonghai Terminal and CSP Wuhan Terminal and continue to develop hub port in the Yangtze Delta region.
What is more, COSCO Shipping Ports revealed its intention to sell all of its indirect interests in Taicang Terminal and Jiangsu Petrochemical Terminal. However, the company has not yet signed any agreements related to such disposals.
“The transactions are in line with the company’s strategic plan to divest assets in order to achieve capital recycling, which will add momentum for the future development. The company aims to improve asset quality, optimize domestic terminal portfolio and improve operating efficiency,” Feng Boming, Chairman of COSCO Shipping Ports, commented.