Cosco and SIPG jointly offer to acquire OOIL
Cosco Shipping Holdings Co. Ltd., a majority owned subsidiary of China Cosco Shipping Corporation Ltd, and Shanghai International Port (Group) Co. (SIPG) yesterday have made a pre-conditional voluntary general offer to all shareholders of Orient Overseas (International) Limited (OOIL) to acquire all issued OOIL shares at an offer price of HK$78.67 in cash. On completion, assuming all OOIL shareholders tender their shares, Cosco Shipping Holdings will hold 90.1%, while SIPG will hold 9.9% of OOIL.
The offer is dependent upon the satisfaction of pre-conditions, which include the necessary regulatory approvals as well as approval from Cosco Shipping Holdings shareholders. The controlling shareholder, who currently holds 68.7% of OOIL, has irrevocably undertaken to accept the offer.
The transaction marks the latest consolidation in the global maritime industry. It is believed that the combination of Cosco Shipping Holdings and OOIL can deliver a stronger competitive advantage. OOIL is the seventh largest container shipping company in the world, with extensive container shipping routes and networks. It is known for its superior service and operational performance in the global maritime industry.
The combined Cosco Shipping Lines, a subsidiary of Cosco Shipping Holdings, and OOIL will operate more than 400 vessels over a much expanded yet well-structured network, with capacity exceeding 2.9 million TEUs including orderbook. The combination will enhance the industry leading position of both companies as a whole.
Post closing, Cosco Shipping Lines and OOIL will continue to operate under their respective brands, providing container transport and logistic services. By leveraging the strengths of each company and achieving synergies, the businesses will enhance their operating efficiencies and competitive positions to achieve sustainable growth in the long term. Both companies are members of the Ocean Alliance, and will continue to work together under this framework.
The Joint Offerors intend to maintain OOIL’s listed status following close of the Offer, and are committed to retaining the existing compensation and benefit system at OOIL and will not terminate the employment of any employee at OOIL as a result of this transaction for at least 24 months after the close of the offer. Besides that, the Joint Offerors intend to maintain OOIL’s global headquarter functions and presence in Hong Kong, and utilize the advantage of both companies’ global network to contribute to the economic prosperity of the territory and development of Hong Kong as an international shipping center.
Cosco Shipping Holdings Co., Ltd. was listed on the Hong Kong Stock Exchange in June 2005 and the Shanghai Stock Exchange in June 2007. The Company now focuses on container shipping and terminal operations. Cosco Shipping Lines, a wholly-owned subsidiary of the Company, is the world fourth largest container shipping company with its operating fleet capacity of 327 ships and 1.7 million TEUs.
Cosco Shipping Ports, another controlled subsidiary of the Company, operates a total of 158 container berths in 30 ports around the world, with the total annual handling capacity of 97.25 million TEUs. Cosco Shipping Holdings is committed to become a top tier container shipping and port service provider with its continuing efforts to build up a global network, provide customers with integrated solutions and create higher return for shareholders.
Shanghai International Port (Group) Co., Ltd. is a company incorporated under the laws of the PRC (Shanghai Stock Exchange. It is principally engaged in port-related businesses, the main business sections of which include container sector, bulk cargo sector, port logistics sector and port service
www.cnshipping.com; www.oocl.com