CSDC dumps $253m investment in China Bohai Bank

CS Investment, wholly-owned by Cosco Shipping Development Co (CSDC), has terminated a plan to invest RMB1.76bn ($253.5m) for an approximately 13.2% stake in China Bohai Bank.

Hong Kong and Shanghai-listed CSDC said it has reconsidered the investment plan and aborted it “in order to adjust the capital layout and improve the efficiency of capital allocation of the company”.

CSDC added that it has waived its right to subscribe for the shares of China Bohai Bank.

In addition, the proposed investment has not been approved by the CBRC, the state-owned assets supervisory institution and other regulatory authorities.

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“The board is of the view that the termination of the capital contribution is in the interests of the company and the shareholders as a whole and will not have any material adverse impact on the financial position, business and prospects of the group,” CSDC stated.

The investment plan was first mooted back in May 2017. CSDC had considered China Bohai Bank to be a “valuable long term investment” and would aid the company in the development of an integrated financial services platform and leasing business.

Posted 26 November 2018

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Lee Hong Liang

Asia Correspondent

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