COSCO Shipping International (Singapore) has finalized the agreed transfer of shares in its shipyard assets to COSCO Shipping Heavy Industry.
The development refers to an agreement, reached between the parties in May 2017, by which COSCO Shipping International sold a 51% equity interest in COSCO Shipyard Group, a 50% equity interest in COSCO (Nantong) Shipyard and a 39.1% equity interest in COSCO (Dalian) Shipyard.
In an effort to centralize operations and management, the company disposed of the shipyard assets for a price of CNY 1.46 billion (USD 222 million).
The move is expected to 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,” Gu Jing Song, Vice Chairman and President of the company, earlier said.
The company informed that it intends to use the sale proceeds from the disposal to fund future projects, which may include mergers and acquisitions, and for working capital requirements of the group.