China

COSCO Shipping and Shanghai International Port Jointly Offer to Buyout Orient Overseas International; Deal Worth Up To RMB 42.87 Bln

Summary:

  • COSCO Shipping Holdings (601919.SS/1919.HK) recently announced that the company and Shanghai International Port Group (600018.SS) have jointly offered to buyout Orient Overseas (International) Limited (0316.HK) using cash, as reported by Cnstock.
  • If the offer is fully accepted, the deal will be worth RMB 42.87 billion.

Why It Matters:

  • The two companies plan to acquire between 430 million shares (or 68.7% of the company) and 626 million shares (or 100% of the company) of Orient Overseas (International) Limited at HK$ 78.67 per share. This price represents a 31.12% premium over the company’s closing price on the last trading day (July 7).
  • Shanghai International Port Group announced that the company plans to acquire up to 61.95 million shares in Orient Overseas (International) for up to HK$ 4.92 billion, or RMB 4.28 billion.
  • Orient Overseas (International) is principally engaged in the container transport and logistics businesses. COSCO Shipping Holdings and Shanghai International Port Group are both large state-owned enterprises focusing on the maritime logistics industry. The purpose of this deal is to create a shipping giant.