Greater ChinaShipyards

Aborted Sinopacific takeover causes first ever loss for CIMC

China International Marine Container (CIMC) has posted a net loss of RMB378m ($56.6m) for the first half of 2016, the first ever loss since the group went public 22 years ago.

Apart from the sluggish market conditions, CIMC attributed the loss mainly to the abortion of the Sinopafic Offshore acquisition as it has made a provisions of up to RMB1.21bn for the deal.

CIMC Enric, a subsidiary of CIMC, signed MOUs with the shareholders of Sinopacific Offshore to take over the yard in August 2015 for about RMB700m and provide up to RMB1.5bn financial assistance to the yard. However, CIMC Enric terminated the deal in June this year as it claimed that certain conditions of the acquisition agreements were not fulfilled and it also said that the sellers had breached certain material terms in the agreement.

CIMC Enric requested Sinopacific Shipbuilding and its parent group Evergreen Holding Group to refund RMB179m ($27.2m) in pre-payments and relevant interest, and it also cancelled the financial assistance agreement and asked for refund of RMB482m loan already provided to the yard.

Sinopacific Offshore has since gone into liquidation.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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