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Cosco Shipping Port sells port assets to SIPG

Cosco Shipping Port (CSP) has entered into purchase agreements with Shanghai International Port Group (Hong Kong) to dispose of its indirect interests in Nanjing Longtan Terminal, Yangzhou Yuanyang Terminal, and Zhangjiagang Terminal.

The total value of the sale is around RMB1.064bn. Upon the completion of the deals, CSP will have no interests in any of the terminals.

Additionally, CSP also announced that the company intends to dispose all of its indirect interests in Taicang Terminal and Jiangsu Petrochemical Terminal.

The transactions are in line with the company’s strategic plan to divest assets in order to achieve capital recycling and could improve the overall quality of the company’s terminal portfolio in the Yangtze Delta Region. Disposal of these port assets, the throughput and profit contribution from which is relatively small, will further streamline the company’s terminal portfolio and enhance the profitability, Cosco Shipping Port said in a filing.

SIPG said the acquisitions of port assets will promote the company’s Yangtze river development strategy, which could optimize Shanghai International Port Group’s (SIPG) ports layout along Yangtze river and improve regional port cooperation in Yangtze river delta.

CSP is principally engaged in the businesses of managing and operating terminals, and related businesses, which is committed to building global terminal network with controlling stakes and strengthening control and management of the ports and terminals business.