Cosco Shipping Ports and Qingdao Port International (QPI) have entered into an agreement which sees Cosco Shipping Ports make strategic investment in QPI.
According to the agreement, Shanghai China Shipping Terminal Development, a wholly-owned subsidiary of Cosco Shipping Ports, will subscribe for 1.015bn domestic shares in QPI for around RMB5.8bn ($848m), of which RMB3.2bn will be settled by the transfer of a 20% equity interest in Qingdao Qianwan Container Terminal to QPI and the remaining approximately RMB2.6bn will be settled in cash.
Upon completion of the transaction, Cosco Shipping Ports’ shareholding in QPI will increase to about 18.41% in total.
The two parties also agreed on co-investing in overseas terminal projects including the Khalifa Port Container Terminal II project in Abu Dhabi and setting up terminal project management company to co-operate in the business of management and operation of terminal projects.
Cosco Shipping Ports said the investment in QPI is a meaningful step in realising the company’s strategy of sharpening its competitive edge and creating greater value.