Shanghai: China’s state-run shipping giant China Shipping Group is proposing to sell part of its stake, and give up its control, in listed subsidiary China Shipping Haisheng.
China Shipping Group has informed China Shipping Haisheng in a notice that it is planning to sell 82m shares, representing 14.11% equity of the company, and on completion of the sale, China Shipping Group will still hold a 13.28% stake.
The proposal is pending approval from the authorities.
China Shipping Haisheng mainly operates in the bulk and chemical shipping sectors and is the largest shipping company in Hainan in terms of shipping capacity.
The company reported a net profit of RMB140.37m ($22.62m) for the first quarter of 2015. It is currently planning to issue RMB2bn ($322.4m) worth of new shares to repay bank loans.