OOIL Announces Plans to Issue New Shares on the Market

Orient Overseas (International) Limited (“OOIL”) reported that the company has entered into a Placing and Subscription Agreement with Faulkner Global Holdings Limited, the immediate parent company and part of COSCO SHIPPING Holdings, and JP Morgan, as announced on the Hong Kong Stock Exchange on 22nd January, 2021.

 

Through Top-up placement of existing shares, the effect of this will be the issuance of 11.4 million new shares by OOIL, which represents approximately 1.82% of the existing share capital of the company.   While COSCO SHIPPING Holdings will not reduce the number of shares it holds in OOIL, this arrangement will see the entry of new institutional investors to our shareholder register, from all over the world.  

 

The net proceeds received by OOIL will be HK$923.72 million, which is approximately US$120 million.  The company intends to use the proceeds from issuing the Subscription Shares for the money required for paying the vessels under construction and purchase of containers and related assets, or for other possible investment in the future. The Company will closely monitor the business of the Group and the market conditions for any such investment opportunities.

 

This transaction is a clear statement of the faith of COSCO SHIPPING Holdings and OOIL in the enduring strong value of the Dual Brand strategy.

 

By issuing further shares, it is hoped that more trading in OOIL stock (listed on the Hong Kong Stock Exchange with Stock Code 316) will become possible, and that more and more potential shareholders may be attracted to consider investing in OOIL, based on the Group’s long-standing market reputation, competitive position and performance over the years.   

 

The Group will build on the success of the Dual Brand Strategy both in terms of outstanding customer service and network,  and also in terms of our relationship with the financial community.  Through enhancing OOIL’s reputation and market presence in a measured, intelligent and steady manner, we will work to bring further benefits to our entire group and all of its shareholders.   

 

About Orient Overseas (International) Limited

Orient Overseas (International) Limited (“OOIL”), a company with total revenues in excess of US$6.9 billion, has principal business activities in container transport and logistics services. Listed on The Stock Exchange of Hong Kong, the OOIL Group has more than 410 offices in over 85 countries/regions.

Orient Overseas Container Line and OOCL are trade names for transportation provided separately by Orient Overseas Container Line Limited ("OOCLL") and OOCL (Europe) Limited respectively and both are wholly-owned subsidiaries of OOIL. OOCL is one of the world's largest integrated international transportation and logistics companies and is an industry leader in the use of information technology and e-commerce to manage the entire cargo transport process. OOCL's modern fleet today includes some of the youngest, largest, fuel efficient, and environmentally friendly vessels carrying cargo on hundreds of trade routes around the world, providing a vital link in Global Trade.

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