China COSCO Strives to Return to Profitability with Proposed Sale of COSCO
Logistics to Controlling Shareholder
BEIJING, March 11, 2013
BEIJING, March 11, 2013 /PRNewswire/ -- China COSCO Holdings Company Limited
("China COSCO" or the "Group") (HKEx:1919, SSE:601919) put forth a preliminary
proposal in an announcement to sell a 100% interest in its directly-owned
subsidiary COSCO Logistics Co., Ltd. ("COSCO Logistics") to its controlling
shareholder China Ocean Shipping (Group) Company ("COSCO Group"). The board of
directors has approved commencing with related processes. Details of the
proposed transaction are still in negotiation. Given the uncertainties
surrounding it, all investors are advised to pay attention to the investment
risks involved. The Group will make public announcement on the progress of the
proposed transaction in due course.
In order to protect the fundamental interest of shareholders, China COSCO has
prudently come up with this proposal after a comprehensive consideration on
its sustainable growth capability and profitability. The Group expects that if
the transaction is approved and carried out on a timely basis, it will
generate reasonable capital gain which can help boost the Group's operating
results in 2013 and reduce the risk of its stock being suspended from trading
on the A-share market.
China COSCO is upbeat about China's and the global macro-economic environment
and international trade in the long run. It firmly believes that the shipping
industry will stage a rebound from the trough and move in an uptrend.
Moreover, COSCO Group reiterates that it will continue to use China COSCO as a
platform to tap into capital markets. Meanwhile, China COSCO will have a
priority to acquire COSCO Logistics back from COSCO Group when overall
conditions are favourable.
All in all, the Group will push ahead with the operating principles of
"boosting sales, adjusting business structure, reinforcing management and
exercising stringent cost controls". Any measures that can help improve the
Group's overall profitability, drive sustainable growth and protect the
long-term interests of shareholders will be given careful consideration and
implemented at full strength after thorough discussion, review and approval
according to the established procedures.
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About China COSCO:
China COSCO Holdings Company Limited ("China COSCO", together with its
subsidiaries collectively known as the "Group"), is a leading global
integrated shipping and logistics services provider. The Group provides
comprehensive shipping services including container shipping, dry bulk
shipping, logistics, terminal operations, container leasing, freight
forwarding and shipping agency services. It commands leadership in each of
business sector. China COSCO operates the largest dry bulk fleet in the world.
Its container fleet is the fourth largest in the world and the largest in
China. Its terminal operation and container leasing business are ranked the
fifth and the third respectively in the world, while its logistics business is
the largest in China. The Company was listed on the Hong Kong Stock Exchange
in June 2005 and the Shanghai Stock Exchange in June 2007 respectively. As the
financing platform of COSCO Group, China COSCO is determined to becoming a
leading global shipping and logistics enterprise.
Investor and Media Enquiries:
Henry Chik / David Shiu / Camille Xiong / Ivan Kau
Tel: (852) 2522-1838 / (852) 2522-1368
Email: email@example.com / firstname.lastname@example.org
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SOURCE China COSCO Holdings Company Limited
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