Cosco plans sale of $1.3b Orient Overseas shares

HONG KONG • Cosco Shipping Holdings plans to sell HK$7.43 billion (S$1.3 billion) worth of Orient Overseas International's (OOIL) shares to CK Hutchison Holdings and others, in a move to restore the required public float of OOIL.

Last week, Cosco said all pre-conditions for the offer to buy OOIL had been satisfied after receiving a decision from China's anti-monopoly watchdog "not to prohibit" the planned takeover.

The Chinese shipping group said it would sell up to 94.49 million OOIL shares, or 15.1 per cent of the issued share capital of the container transport firm, at HK$78.67 apiece, in a deal that will take place only if the public float of OOIL falls below 25 per cent.

CK Hutchison will buy 4.99 per cent of the issued share capital of OOIL, State Development & Investment Corp will acquire 2.38 per cent, and Silk Road Fund will take 7.73 per cent.

CK Hutchison will buy 4.99 per cent of the issued share capital of OOIL, State Development & Investment Corp will acquire 2.38 per cent, and Silk Road Fund will take 7.73 per cent.

Cosco Shipping said proceeds will be used to replenish working capital.

REUTERS

A version of this article appeared in the print edition of The Straits Times on July 07, 2018, with the headline 'Cosco plans sale of $1.3b Orient Overseas shares'. Print Edition | Subscribe