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CMHI invests $558m to own new shares in Dalian Port

Port operator China Merchants Holdings (International) Company (CMHI) will spend HKD4.33bn ($558m) to own new shares issued by Dalian Port (PDA) Company, making it the second largest shareholder upon completion of the deal.

Lee Hong Liang, Asia Correspondent

January 13, 2016

1 Min Read
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Hong Kong-listed Dalian Port has entered into a subscription agreement with CMHI to issue 1,180,320,000 shares as a first tranche placing shares at a price of HKD3.67 per share, or HKD4.33bn in total.

The placing price of HKD3.67 per share represented a discount of approximately 5.51% to the average closing price of HKD3.884 per share on the stock exchange for the last five consecutive trading days prior to the date of the subscription agreement on 12 January.

Upon completion of the deal, CMHI will become the second largest shareholder in Dalian Port with 21.05% stake while Dalian Port Corporation will see its controlling stake of 52.16% fall to 41.18%.

Dalian Port will use the net proceeds from the first tranche placing to develop its oil business, cope with investments in or optimise and integrate domestic and foreign ports in line with the One Belt, One Road strategy, enhance the intelligent level of the port operation management platform, construct logistics facilities, and replenish working capital.

CMHI, at present, has a comprehensive port network in the major coastal regions in China, and is also involved in strategic investments and owned operating rights across coastal hub ports in Hong Kong, Shenzhen, Ningbo, Shanghai, Qingdao, Tianjin, Xiamen Bay and Zhanjiang.

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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