COSCO SHIPPING Ports and Qingdao Port International entered into the Transaction Agreement, pursuant to which COSCO SHIPPING Ports will makestrategic investment in QPI.Taking the proposed New H Share Issurance plan of QPI into consideration,the Subscription Shares will represent approximately 16.82% of the issued share capital of QPI, and COSCO SHIPPING Ports’ shareholding in QPI will increase to approximately 18.41% in total.
Shanghai China Shipping Terminal Development Co., Ltd. (SCSTD), a wholly-owned subsidiary of COSCO SHIPPING Ports, will subscribe for 1,015,520,000 non-circulating domestic shares in QPI at a total consideration of approximately RMB 5.8 billion (equivalent to RMB5.71 per share), of which approximately RMB 3.2 billion will be settled by the transfer of a 20% equity interest in Qingdao Qianwan Container Terminal Co., Ltd.(QQCT) to QPI and the remaining approximately RMB2.6 billion will be settled in cash.
COSCO SHIPPING Ports and QPI also announced to enter into the Strategic Cooperation Agreement on the same date, the parties expressed the intent of the following strategic co-operation in the future:
(i) further deepening co-operation towards developing the Port of Qingdao into an international shipping hub in Northeast Asia;
(ii) co-investing in overseas terminal projects (including the Khalifa Port Container Terminal II project in Abu Dhabi); and
(iii) setting up terminal project management company(ies) to co-operate in the businesses of management and operation of PRC and overseas terminal project(s) of COSCO SHIPPING Ports agreed by the parties.
The transcation is an important measure for the both sides to achieve strategic cooperation. Both sides say they can establish strategic cooperative relationship, andachieve business cooperation, mutual benefit and win-win result.
Source & Image credit: Qingdao Port
