Hong Kong: Chinese port operator Tianjin Port Development Holdings announced yesterday its plan to acquire 56.8% of rival Tianjin Port Co for HKD10.96 billion (USD1.4bn) (EUR1.1bn) in cash and stock.
Under the terms of the operation, Tianjin Port Development will issue HKD 7.03 billion in new shares, which will be sold at HKD 2.09 apiece to state-owned Tianjin Port (Group) Co, which is the parent of Tianjin Port Co. Tianjin Port Development will pay the balance in cash using its own resources, new shares and bank loans.
Tianjin Port Development, which is much exposed to the container business, was sharply affected by the global financial turmoil and expects the move to make its terminals more competitive, Reuters reported. Yu Rumin, chairman of Tianjin Port (Group) Co, pointed out that the transaction would be a win-win deal with all the companies involved getting a boost to their earnings per share. [17/03/09]
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