China Merchants has entered into an agreement with AVIC International Holdings to acquire 73.87% equity shares in Singapore-listed AVIC International Maritime, as AVIC International moves to exit the shipping business.
The total value of the deal is around S$31.6m ($22.7m).
AVIC International said the disposal is part of the group’s strategy of gradually withdrawing from the shipping business to focus on principal businesses of high-tech electronic products, international engineering and trading and logistics.
Following the completion of the deal, AVIC International Holdings will no longer hold any equity interest in AVIC Maritime and the shipping business segment will only account for 0.23% of the group’s total assets.
The group will use the proceeds from the sale to repay loans and general capital purpose.
In July, China Merchants completed the takeover of AVIC Weihai Shipyard from AVIC International Holdings.