COSCO Shipping says to buy $2.7 bln port assets from parent, in $2.9 bln ship building deal

Hamburger Hafen und Logistik AG

31/10/2022 01:45

Oct 31 (Reuters) - COSCO Shipping Holdings Co Ltd
 1919.HK  said on Monday it has agreed to buy port assets from
its parent for an aggregate 19.7 billion yuan ($2.7 billion) as
it aims to build a global digital supply chain for its
customers.
    The Chinese shipping group said it would buy 14.9% of
Shanghai International Port (Group)  600018.SS  from its
indirect controlling parent China COSCO Shipping Corp Ltd for
18.9 billion yuan, and a 3.2% stake in Guangzhou Port
 601228.SS  for 778.7 million yuan.
    COSCO Shipping Holdings  601919.SS  also said it had entered
into shipping contracts with China COSCO Shipping's Dalian COSCO
KHI Ship Engineering to build five vessels for a total of $1.2
billion.
    Its unit Orient Overseas (International) Ltd  0316.HK  has
entered into ship building contracts with Nantong COSCO KHI Ship
Engineering to build seven vessels for a total $1.7 billion.
    Last week, the German cabinet allowed COSCO to buy a stake
in a terminal in the country's largest port in Hamburg, but the
approved investment is less than the initially planned 35% stake
that the Chinese shipping giant and HHLA  HHFGn.DE  had aimed
for.  urn:newsml:reuters.com:*:nL8N31R1ZO
($1 = 7.2499 Chinese yuan renminbi)
 (Reporting by Donny Kwok; Editing by Kim Coghill)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470;))