China’s COSCO SHIPPING Development is to merge its subsidiaries CS Finance and COSCO Finance as it received an approval for the move from its Board of Directors on November 13.
Pursuant to the approval, the company said that CS Finance will absorb and merge with COSCO Finance. Upon completion, CS Finance will continue as the surviving company and be renamed as COSCO SHIPPING Finance.
COSCO Finance will cease to exist as a legal entity and become a branch of COSCO SHIPPING Finance, while the assets, liabilities, businesses and employees of the firm will be succeeded by the new entity.
Additionally, the post-merger shareholders, including COSCO SHIPPING Development, entered into the shareholders agreement on November 13 to govern their respective rights and obligations in the merged unit.
As part of the merger, China Shipping and COSCO company will simultaneously transfer their respective equity interests in COSCO SHIPPING Finance, directly owned by them, to COSCO SHIPPING at nil consideration.
Once finalized, the registered capital of COSCO SHIPPING Finance will be the aggregate of the registered capital of CS Finance and COSCO Finance prior to the merger, being CNY 2.8 billion (USD 421.5 million).