Business

Tuesday August 28, 2007

Cosco Pacific selling stake in bank for US$268mil



HONG KONG: Cosco Pacific Ltd said it would sell its 20% stake in retail and commercial banking and financial services unit, Chong Hing Bank Ltd, to the company's ultimate parent China Ocean Shipping (Group) Co for HK$2.09bil (US$267.7mil) in cash.

Cosco Pacific, a subsidiary of China Cosco Holdings Co Ltd, said in a statement late on Sunday that it would sell a firm which held 87 million shares in Chong Hing Bank.

The consideration translates to an implied valuation of HK$24 a share for Chong Hing Bank, representing a 33.2% premium over its closing price of HK$18.02 on Friday.

Asia's third largest container terminal operator also said it planned to sell less profitable port facilities to raise funds to expand in China and overseas.

The sale of “less efficient container terminals'' should take place in the first half 2008, deputy managing director Kelvin Wong said in an interview in Hong Kong yesterday.

Cosco Pacific planned to spend US$440mil on terminals this year, possibly including investments in Egypt and Panama, Wong said. The company also aims to sell shares in China, as it seeks to add an average 20 berths a year till 2010, as well as facilities for handling oil and other commodities. – Agencies


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