Cosco Corp suspends trading of shares pending announcement

Cosco Corporation (Singapore) has requested a trading suspension on its shares with immediate effect pending the release of an announcement.
Cosco Corporation (Singapore) has requested a trading suspension on its shares with immediate effect pending the release of an announcement. PHOTO: BLOOMBERG

SINGAPORE - Mainboard-listed Cosco Corporation (Singapore) has requested a trading suspension on its shares with immediate effect pending the release of an announcement.

This announcement relates to the plan by its parent firm China Ocean Shipping (Group) Company on a significant transaction that may have an impact on the company's securities, and which may or may not materialise, it said.

"The company is of the view that as it cannot ascertain if the proposed transaction may or may not have a material impact on the company's securities, it is not appropriate for trading in the company's securities to continue until the proposed transaction is finalised and/or announced," Cosco said n a filing with the Singapore Exchange on Tuesday morning.

Bloomberg News reported on Monday that Beijing may merge Cosco, the largest shipping company in the country by fleet size, with China Shipping Group, citing unnamed people familiar with the matter. If not a full merger, the government could instead combine some of their businesses, the report added.

Several arms of the two shipping giants halted trading in their shares pending an announcement on Monday, in both Shanghai and Shenzhen, as well as in Hong Kong.