COSCO Shipping Inks Loan to Buy Logistics Firm
COSCO Shipping International (Singapore) has entered into a loan facility in an effort to partially finance the purchase of the logistics company Cogent Holdings Limited.
The shipping firm made a voluntary conditional cash offer for all the issued and paid-up ordinary shares in the capital of Cogent Holdings Limited (CHL), including all shares owned, controlled or agreed to be acquired by parties acting or deemed to be acting in concert with the company.
Therefore, COSCO Shipping International (Singapore) entered into a loan facility agreement for a 3 year term loan facility and a one year term loan facility in the aggregate principal amount of up to SGD 350 million (USD 260.7 million) on terms set out in a facility agreement dated December 26, 2017.
The amount is expected to be largely used towards partially financing the offer, however, the company informed that the utilisation of the facilities remains subject to the conditions set out in the facility agreement.