COSCO SHIPPING Ports has sold multiple port assets to Shanghai International Port Group (SIPG).
DISPOSAL OF INTEREST IN VARIOUS PORT ASSETS
On 18 September 2019, the Company (as seller) entered into the Longtan Share Purchase Agreement, Yuanyang Share Purchase Agreement and Zhangjiagang Share Purchase Agreement with SIPG (HK) (as purchaser), in relation to the sale and purchase of the Company’s indirect interests in Nanjing Longtan Terminal (via Longtan SPV), Yangzhou Yuanyang Terminal (via Yuanyang SPV and Zhangjiagang SPV) and Zhangjiagang Terminal (via Zhangjiagang SPV), respectively.
After completion of the Share Purchase Agreements, the Company will cease to own any interest in any of the Target Companies, Nanjing Longtan Terminal, Yangzhou Yuanyang Terminal and Zhangjiagang Terminal. Each of Longtan SPV, Yuanyang SPV, Zhangjiagang SPV, Yangzhou Yuanyang Terminal and Zhangjiagang Terminal will cease to be a subsidiary of the Company following the completion of the Transactions, and Nanjing Longtan Terminal will cease to be an associate of the Company following the completion of the Transactions.
IMPLICATIONS UNDER THE LISTING RULES
The applicable percentage ratios set out in Rule 14.07 of the Listing Rules in respect of the transaction under each Share Purchase Agreement, on a standalone basis, are less than 5% and therefore, these transactions, on a standalone basis, are fully exempt from the reporting and disclosure requirements under Chapter 14 of the Listing Rules. However, as these transactions under the Share Purchase Agreements are of similar nature or otherwise related, the Transactions are aggregated and treated as if they were one transaction pursuant to Rule
14.22 of the Listing Rules.
The highest of the applicable percentage ratios in respect of the Transactions (as aggregated) exceeds 5% but lower than 25%. The Transactions therefore constitute discloseable transactions of the Company and are subject to the reporting and disclosure requirements under Chapter 14 of the Listing Rules.
The Transactions are subject to the satisfaction or waiver of conditions precedent. There is no assurance that the Transactions will take place or as to when they may take place. Shareholders and potential investors of the Company should therefore exercise caution when dealing in the securities of the Company.
POSSIBLE DISPOSAL OF INTERESTS IN TAICANG TERMINAL AND JIANGSU PETROCHEMICAL TERMINAL
In addition to the Transactions set out above, the Board would like to further announce that the Company also intends to dispose all of the Company’s indirect interests in Taicang Terminal and Jiangsu Petrochemical Terminal. As at the date of this announcement, no agreement has been entered into by the Group in relation to such disposals.
There is no assurance that the Possible Transactions will take place or as to when they may take place. Shareholders and potential investors of the Company should therefore exercise caution when dealing in the securities of the Company.
Source:COSCO SHIPPING Ports
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