CMPort to Buy Controlling Stake in Zhongshan Port Group
- Business & Finance
Hong Kong-listed port investor China Merchants Port Holdings (CMPort) has agreed, through its subsidiary, to buy a 51 percent stake in Zhongshan Port Group.
Under a share purchase agreement, expected to be signed on September 13, 2017, CMPort’s Shenzhen Chiwan Wharf Holdings Limited would buy the share from Zhongshan Zhonghang Investment Development for a total of CNY 485 million (USD 74.1 million).
The amount would be paid in two installments and funded by the internal resources of the group and external bank loan facilities.
Zhongshan Port Group currently operates three port zones namely Zhongshan Port, Xiaolan Port and Shenwan Port in the Pearl River Delta region with a total of 23 berths in operation.
CMPort said that the acquisition would further strengthen its port network and strategic synergy of port resources in the Pearl River Delta region.
Following completion of the deal, Chiwan Wharf, Zhongshan Zhonghang Investment Development and Zhongshan District City Construction Investment Group Co (ZDCCI) will each hold 51 percent, 11.51 percent and 37.49 percent of the equity interest in the port, respectively.
Earlier in September, CMPort entered into a deal to buy 90 percent of shares in Brazilian port operator TCP Participações S.A.
With the acquisition of TCP, worth USD 923.7 million, the group aims to expand its business to the Latin America region and further consolidate its position globally.