Port operator COSCO Shipping Ports Limited revealed plans to buy into Guangxi Beibu Gulf Terminal, a container terminal in China.
As informed, China Shipping Terminal Development (CSTD), a subsidiary of COSCO Shipping Ports, proposed to enter into a capital increase agreement.
Under the deal, CSTD would agree to subscibe for a 26 per cent equity interest in Guangxi Beibu Gulf Terminal through injection of its entire 40 per cent equity interest in Guangxi Qinzhou Terminal into the abovementioned container terminal and a cash consideration of RMB 486.8 million (around $71.9 million).
The capital increase agreement is subject to relevant approvals.
Guangxi Qinzhou Terminal is owned by Beibu Gulf Port Qinzhou and CSTD as to 60 per cent and 40 per cent respectively. The entity manages and operates berths numbered 1 and 2 of the container terminal at the Dalanping South Operation Area of Qinzhou Port in Guangxi, the PRC, and provides related services.
Guangxi Beibu Gulf Terminal manages and operates berths numbered 3 to 6 of the container terminal at the Dalanping South Operation Area of Qinzhou Port and provides related services.
“The proposed investment in Guangxi Beibu Gulf Terminal will be a meaningful step in realising the company’s strategy of creating greater value and also strengthening … position in the Greater China Region, which is in line with the company’s strategy of enhancing control over terminal assets,” COSCO Shipping Ports said.
“In addition, the company believes that the investment will also enhance the company’s competitiveness by optimising its investment portfolio and concentrating on high quality assets, which is expected to result in an increase in the overall profitability of the terminal business of the company.”