Chiwan Wharf takes 39% stake in CMPort in asset shuffling deal

The deal will see Chiwan Wharf issuing shares to China Merchants Investment Development (CMID), a unit of China Merchants Group, which will see CMID ending up with a 64% stake in Chiwan Wharf.

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In what is essentially an asset reshuffling exercise, the deal, which includes a subsidiary agreement with China Merchants Group, leaves the group holding 87.8% of Chiwan Wharf and remaining the ultimate controlling shareholder of the company while Chiwan Wharf will be able to consolidate CMPort’s results as a subsidiary.

The exercise, dubbed a material asset reorganization, helps CMPort meet its non-compete obligations by divesting its assets in west Shenzhen while preparing to inject all the China Merchants Group’s port-related assets into Chiwan Wharf.