CST Buys 20Pct Interest in Shanghai Beihai

China Shipping Tanker (CST), a wholly-owned subsidiary of the China Shipping Development (CSD) Company, has signed an Equity Transfer Agreement with Sinochem International Corporation for the purchase of 20% interest in Shanghai Beihai Shipping (SBS).

The total value of the deal is $132.9m.

“The acquisition represents a strategic expansion of the group to further entrench its position in the coastal and domestic crude oil shipping market in the PRC, and having reviewed the track record of the target company, the directors believe that the investment will provide a steady return to the group,” CST said, adding that the move is expected to boost its position in the maritime petroleum product transportation market, and further
enhance the strategic relationship with CNOOC.

SBS is a sino-foreign joint venture enterprise established in the PRC, engaged in the businesses of transportation of petroleum product from Shanghai to other ports along the coast and the middle-lower Yangtze River, international maritime dangerous goods transportation, vessel chartering, and provision of transportation consultancy services.

The company currently has 8 owned, and 4 chartered tankers in its fleet.

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June 23, 2014