Hong Kong Listed Cosco Shipping is to acquire locally based marine equipment supplier CSHT Marine for HK$118.4m
CSHT is currently joint owned by Hoi Tung and Cosco Shipping Financial. Cosco Shipping said that the unit would be bought with the internal resources of the Group. The total amount represents a 1.2% premium over the audited net asset value of CSHT Marine as at 30 September.
“The Acquisition is in line with the Group’s strategic direction in developing the shipping services industrial cluster. The Acquisition will also be a horizontal integration of the Group’s marine equipment and spare parts business segment, which on one hand significantly expands the size of business, and on the other hand facilitates synergy creation through economies of scale and cost reduction,” the company said in a statement to the Hong Kong Stock Exchange.
Cosco Shipping had until recently larger acquisitions in mind including the port assets of Hanjin Shipping although there appears to have been no concrete develoopments in this regard since the company suggested such a move back in September.
China Cosco posted an interim loss of US$1.08bn at the half way stage this year.