Nov. 27 (Bloomberg) -- China Shipping Container Lines Co., the nation’s second-largest cargo-box carrier, will merge its port unit with that of its parent, taking a 49 percent stake in the combined operation.
China Shipping Container will receive 2.78 billion shares in China Shipping Terminal Development H.K. Co. valued at 3.42 billion yuan ($561 million), according to a statement and a circular to Hong Kong’s stock exchange yesterday. Parent China Shipping Group Co. will inject HK$4.1 billion ($529 million) into the combined company and take a 51 percent stake.
“The board is of the view that the streamline and consolidation of China Shipping Group’s port businesses and assets into one platform will result in economies of scale as well as a globally integrated port business,” China Shipping Container said in the circular. “The transaction will allow the company to focus on its core business.”
China Shipping Container, based in Shanghai, has also announced plans to sell stakes in container terminals in Lianyungang and in Shanghai’s Yangshan port as it seeks to restructure and return to profit. The company had a third-quarter net loss of 404 million yuan, against a year-earlier profit of 991 million yuan.
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