China Merchants Port Holdings is selling its entire 66.1% equity stake in Shenzhen Chiwan Wharf Holdings to three affiliate special purpose vehicles of China Merchants Group for a total price of RMB10.04bn ($1.59bn).
Following the share disposal, Chiwan will cease to be a subsidiary of China Merchants Port Holdings.
Chiwan is listed on Shenzhen Stock Exchange and mainly engages in logistics service, container terminal and port management.
According to China Merchants Port Holdings, the share disposal helps resolve competition issues between it and Chiwan, with China Merchants Group promising to resolve any potential competition between Chiwan and the group’s other port operations in west Shenzhen through assets reorganisation.
