In the continued of the merged Cosco and China Shipping, the Singapore-listed company is selling its 51% stake in Cosco Shipyard Group, 50% stake in Cosco (Nantong) Shipyard, and 39.1% holding Cosco (Dalian) Shipyard for RMB1.47bn (SGD297.1m) to CSHI.
The loss making shipyard business stakes, made up the vast majority of revenues for Cosco Shipping International (Singapore) accounting for SGD392.6m ($279.3m) of its total first quarter revenues of SGD401.8m. Dry bulk shipping and other businesses accounted for the remaining SGD9.2m in revenues in Q1 2017.
“China Cosco Shipping is restructuring its shipyard businesses to centralize operations and management,” said Gu Jing Song, vice chairman and president of Cosco Shipping International (Singapore).”
“The proposed disposal will enable the company to exit from a loss-making business and create cash for investment in potential future new businesses, substantially reduce the company’s debt and improve the company’s financial position.”
The company said future projects could include mergers and acquisitions.
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