COSCO SHIPPING’s Sale Of A Shares And H Shares Of CIMC


Paul Hastings LLP advised COSCO SHIPPING Development Co. on the deal.

COSCO SHIPPING Development Co., Ltd. (Stock Code: 2866.HK and 601866.SH) (“COSCO SHIPPING Development”) announced its disposal of A shares and H shares of China International Marine Containers (Group) Co., Ltd. (Stock Code: 2039.HK and 000039.SZ) (“CIMC”). Hong Kong and Shanghai-listed COSCO SHIPPING Development is principally engaged in shipping and industry-related leasing businesses, manufacturing of containers and provision of investment and financial services.

Pursuant to the share transfer agreement, COSCO Container and Long Honour (each being a wholly-owned subsidiary of COSCO SHIPPING Development) have agreed to sell an aggregate of 645,010,617 CIMC shares, comprising 350,000,000 A shares and 295,010,617 H shares, to Shenzhen Capital Operation and Shenzhen Capital Hong Kong (the ultimate beneficial owner of which is the State-owned Assets Supervision and Administration Commission of Shenzhen). The transfer involves approximately 17.94% of the total issued share capital of CIMC. The equity interest of COSCO SHIPPING Development in CIMC will decrease to approximately 4.69% upon completion, while CIMC will continue to be an associate of COSCO SHIPPING Development. The proceeds from the disposal of shares will primarily be used for loan repayment for the optimization of asset structure.

The Paul Hastings team was led by Raymond Li (Picture), global partner and chair of Greater China, and corporate partner Bonnie Kong, with support from associate Andy Tam and trainee solicitor Beatrice Wun

Involved fees earner: Bonnie Kong – Paul Hastings; Raymond Li – Paul Hastings; Andy Tam – Paul Hastings;

Law Firms: Paul Hastings;

Clients: COSCO SHIPPING Development Co., Ltd.;

Author: Michael Patrini