SASAC Gives Nod to COSCO Shipping’s USD 1.9 Bn Share Plan
China’s State‑owned Assets Supervision and Administration Commission (SASAC) has approved COSCO Shipping Holdings’ CNY 12.9 billion (USD 1.9 billion) share issuance plan announced back in October.
Under the plan, the company intends to offer over 2 billion of its series A shares through a private placement.
The approval also relates to the subscription of 50 percent of the total number of A Shares by Cosco Shipping.
The proposed share issuance needs also to be approved by the shareholders and the China Securities Regulatory Commission (CSRC).
The transaction is planned to be completed within six months after obtaining CSRC’s approval.
As informed earlier, the company plans to use to net proceeds to fund 20 boxships under construction, six of which would have a capacity of over 21,200 TEU.
Four of the remaining vessels from the batch would have a capacity of over 14,500 TEU, five would be able to carry 13,800 TEU and the final five would have a capacity of over 20,100 TEU.
“The delivery and completion of the construction of the container vessels would enable the company to further expand the scale of its business, further optimize the planning of its shipping capacity and strengthen supports for terminals of the group along the routes under “the Belt and Road” initiative, which would enhance the company’s operating efficiency and its competitiveness in the global shipping industry,” the company said earlier.
World Maritime News Staff