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Qinhuangdao Port transfers stake in container terminal to jv with Tianjin Port

Author: Posttime:2017-05-19 09:58:16

China’s Qinhuangdao Port has inked an agreement to sell its majority stake in its container terminal operator subsidiary at a consideration of RMB559.57m ($81.18m) to its joint venture firm with Tianjin Port Group.

The deal will see Hong Kong-listed Qinhuangdao Port’s subsidiary Cangzhou Bohai transfer out 90% shareholding in its wholly-owned Cangzhou Bohai Jinji Container Terminal Co to Bohai Jinji Port Investment and Development Company, which is 50-50 owned by Qinhuangdao Port itself and Tianjin Port Group.
“Since Bohai Jinji is a joint venture of the company and Tianjin Port Group, the transfer will bring forth the complementarity of the resources of Jinji Port and the integration of the container business of the group and Tianjin Port Group,” Qinhuangdao Port stated.
The deal will also “promote the development of the group’s container business by integrating the resources of both groups, optimising location distribution and enhancing the efficient use of the ports without constructing new berths for containers.”
Qinhuangdao Port further explained that the deal will increase its ability to collect resources of the group’s ports and help the group build a northern shipping center together with Tianjin Port Group.
Upon completion of the equity transfer deal, Qinhuangdao Port could realise a gain of approximately RMB18.38m, which is proposed to be used as general working capital.
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