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Cosco Shipping, SIPG to buy OOIL in $6.3bn deal

SHANGHAI, July 10, 2017

State-backed Cosco Shipping and Shanghai International Port Group (SIPG) have offered to buy Orient Overseas International Ltd (OOIL) for $$6.3 billion, reports said.

Cosco Shipping Holdings Co is a majority owned subsidiary of China Cosco Shipping Corporation.

A statement said Cosco Shipping and SIPG have made a pre-conditional voluntary general offer to all shareholders of OOIL to acquire all issued shares at an offer price of HK$78.67 in cash. On completion, assuming all OOIL shareholders tender their shares, Cosco Shipping Holdings will hold 90.1 per cent, while SIPG will hold 9.9 per cent.

The offer is dependent upon the satisfaction of pre-conditions, which include the necessary  regulatory approvals as well as approval from Cosco Shipping Holdings shareholders, it said.

The controlling shareholders who currently hold 68.7 per cent of OOIL have irrevocably undertaken to accept the offer, it added.

The deal would see the combined company become the world's third-biggest container shipper and underline China's supply-chain ambitions.

The transaction marks the latest consolidation in the global maritime industry. It is believed that the combination of Cosco and OOIL can deliver a stronger competitive advantage.

OOIL is the seventh largest container shipping company in the world, with extensive container shipping routes and networks. It is known for its superior service and operational performance in the global maritime industry. The combined Cosco Shipping Lines, a subsidiary of Cosco Shipping Holdings, and OOIL will operate more than 400 vessels over a much expanded yet well-structured network, with capacity exceeding 2.9 million TEUs including orderbook. The combination will enhance the industry leading position of both companies as a whole, it said. - TradeArabia News Service




Tags: Cosco Shipping | OOIL | SIPG |

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