Cosco Shipping sets Jan 5 deadline for Cogent privatisation bid

Shipping containers of China Ocean Shipping Company (COSCO) and Hyundai cross the Gulf of Suez towards the Red Sea.

SINGAPORE - Cosco Shipping International has issued formal offer documents for its S$1.02 per share bid to privatise Cogent Holdings, setting a Jan 5, 2018 deadline for Cogent's minority shareholders.

In a filing with the Singapore Exchange on Friday (Nov 24), Cosco Shipping said that the formal offer documents will be despatched to shareholders of Cogent Holdings on Friday.

It added that acceptances of the offer must be received not later than 5.30pm on Jan 5.

Cosco Shipping had announced on Nov 3 that it is acquiring Cogent for S$488.07 million. The aggregate number of Cogent Holdings shares held by the four undertaking shareholders - Tan Yeow Khoon; Tan Yeow Lam; Tan Min Cheow, Benson; and Ng Poh Choo - amount to S$403.5 million, representing about 84.33 per cent of all Cogent shares in issue.

The rationale for the acquisition is to acquire control in one of Singapore's leading full service, integrated logistics service providers with a track record of over 40 years, said Cosco Shipping.

It expects to leverage its holding company China Cosco's existing logistics business platform to potentially develop new business opportunities in the logistics sector in South-east Asia, taking advantage of the "Belt and Road Initiative".

Cogent said last week that it has appointed CIMB as the independent financial adviser for the offer. CIMB's opinion is expected within two weeks of the despatch of the offer document.

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