Greater China

Cosco sells more assets to avoid delisting

Shanghai: Following the equity sale of Cosco Logistics and Cosco Container Industries, financially troubled shipping giant Cosco today announced another two equity sale deals.

Cosco announced that Cosco Qingdao has signed an agreement to sell 81% equity of Cosco Qingdao Asset Management Co to Yuehon Investment, an indirect wholly-owned Hong Kong subsidiary of Cosco. Meanwhile, Cosco Container Lines (Coscon) agreed to sell 81% of its equity in Shanghai Tianhongli Asset Management to Ling Hui Investment, also an indirect wholly-owned subsidiary of Cosco.

Cosco said the board believes that the disposals can improve the earning performance of the company in 2013, replenish the company’s working capital and reduce the risk of the company’s shares being suspended from trading on the A-share market.

Cosco reported a net loss of RMB990m in the first half, its shares will face trading suspension if it fails to make a profit by the end of this year. [30/08/13]

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