CMES acquires 100% equity of Sinotrans Container Lines

On October 29, China Merchants Energy Shipping issued an announcement on cash acquisition of 100% equity of Sinotrans Container Lines and related transactions.
 
According to the announcement, CMES intends to acquire 100% equity of Sinotrans Container Lines held by China Merchants Investment Development. After the completion of this transaction, Sinotrans Container Lines will become a wholly-owned subsidiary of CMES.
 
The announcement stated that the transaction amount was tentatively set at RMB 2,202,137,200. Because the transaction amount involved exceeds 30 million yuan, and it accounts for more than 5% of the absolute value of the most recently audited net assets of CMES, the transaction needs to be submitted to the general meeting of shareholders for deliberation, so there is uncertainty in the transaction.
 
After the completion of this transaction, on the one hand, Sinotrans Container Lines assets will be injected into CMES as a whole, which will improve the business structure, revenue scale and profitability of CMES.
 
On the other hand, Sinotrans Container Lines can rely on China Merchants Energy Shipping's strong financial strength and lower financing costs in the future to provide continuous and strong financial support for the expansion of fleet and route network, and enhance China Merchants Energy Shipping's sustained profitability.
 
Source: Sarah Yu, XINDE MARINE NEWS

The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.