Hong Kong-listed Cosco Pacific said on Monday it will sell the CIMC stake for $1.22bn in cash to its state-owned parent firm China Ocean Shipping (Group) Co (Cosco).
Cosco Pacific said the sale will offer opportunities for the company to redeploy its resources to strengthen its core terminal and container leasing business, as well as improving its cash flow position for providing working capital funds.
The stake sale comes as China's Cosco, which owns 42.7% of Cosco Pacific, struggled to improve its profitability after reporting two consecutive years of net losses.
CIMC is the world's biggest container maker by output, but it has also struggled to raise sales due to the sluggish global demand for container boxes.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
