Qingdao Port has agreed to purchase 33.335% equity interests in COSCO SHIPPING Ports(ABU DHABI)

The board of directors of COSCO SHIPPING Ports announced that on 26 November 2019, COSCO SHIPPING Ports (Abu Dhabi) Limited (“CSP (Abu Dhabi)”, a wholly-owned subsidiary of the Company), and Qingdao Port International Development (Hong Kong) Co., Ltd. (“QPI Development”) (together the “Contracting Parties”) entered into a share purchase agreement pursuant to which the Company has agreed to sell, and QPI Development has agreed to purchase 6,667 shares, representing 33.335% equity interests, in CSP (Abu Dhabi), for a consideration of US$59,276,030 (the “Disposal”). In view of the Disposal, the Contracting Parties also entered into a shareholders’ agreement on the Signing Date, which will come into effect on the date of closing.

 

As at the date of this announcement, CSP (Abu Dhabi), directly and by way of nominee arrangement, holds a total of 90% equity interests in CSP Abu Dhabi Terminal L.L.C. (“Abu Dhabi Terminal”), and the remaining 10% equity interests is held by an independent third party. Upon completion of the Disposal, Abu Dhabi Terminal will be indirectly held as to approximately 60% by the Company and as to approximately 30% by QPI Development respectively through CSP (Abu Dhabi).

 

Completion of the Disposal is conditional on the fulfillment of certain conditions. The Contracting Parties will use their best endeavours to fulfill the conditions precedent to the completion no later than 4 months from the Signing Date (the “Long Stop Date”). The Long Stop Date can be extended by mutual agreement between the Company and QPI Development in case the conditions precedent have not been fulfilled as at the Long Stop Date.

 

Reasons for and benefits of the transaction

 

The Company is committed to the development of terminal business. Abu Dhabi Terminal was the first terminal in which the Company holds a controlling stake in the Middle East, which demonstrated the Company’s strategic plan to proactively build a global terminal network.

 

QPI Development has extensive experience in ports operation and reserve of talents. The Disposal is expected to further improve the operational efficiency of Abu Dhabi Terminal, increase the terminal’s competitiveness in the Middle East and provide highly-efficient and better ports services to shipping companies. Furthermore, the Company believes that the Disposal would be beneficial to the two parties in maximising their respective advantages, expanding terminal-extended business and deepening strategic cooperation in terminal business in the long run.

 

Source:COSCO SHIPPING Ports

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