COSCO transfers stake in logistics arm to COSCO Pacific
China Ocean Shipping (Group) Co., owned by China’s government, has transferred a stake in COSCO Logistics Co. Ltd. to one of its affiliated companies for cash and equity worth Rmb1.2 billion ($145 million).
Bermuda-based and stockmarket-listed COSCO Pacific Ltd., which is 53.29-percent owned by COSCO (Group), is acquiring 49 percent of COSCO Logistics, until now wholly owned by the state-owned parent company. The deal will be completed through COSCO Pacific’s wholly-owned logistics subsidiary, COSCO Pacific Logistics Co. Ltd.
The transfer of the shareholding in COSCO Logistics also means that it will now be majority-owned by mainland-based state-controlled COSCO (Group) and minority-controlled by stockmarket-listed COSCO Pacific.
An additional Rmb50 million ($6 million) will be paid by COSCO Pacific to COSCO (Group) if COSCO Logistics achieves a year-end profit exceeding Rmb200 million ($24 million).
COSCO Logistics, which uses brand names including Penavico, made a pro-forma profit of Rmb184 million ($22 million) in 2002 on revenues of Rmb4.6 trillion ($554 million).
Until now a container leasing and port operating company, COSCO Pacific believes that the COSCO Logistics purchase should provide synergies between logistics and port operations.
“We are confident that COSCO Pacific could further enhance shareholders value through this win-win investment into COSCO Logistics,” said Captain Wei Jaifu, president of the COSCO group and chaiman of COSCO Pacific said.