CSC Phoenix share sale falls through

CSC Phoenix share sale falls through

Chinese domestic dry bulk shipping operator CSC Phoenix has announced that its controlling shareholder Tianjin Shunhang Shipping has reached an agreement with Guangdong Wenhua Furui to terminate a proposed share transfer deal of the company.

In April, Tianjin Shunhang Shipping signed an agreement to sell its 17.89% shareholdings in CSC Phoenix to Guangdong Wenhua Furui for RMB1.9bn ($274m) following its failure to restructure CSC Phoenix into a dredging company.

Later Shenzhen Stock Exchange questioned the deal and requested an explanation from Wenhua Furui on the basis and rationality of the pricing.

A disagreement between the two companies also surfaced during the takeover process as Wenhua Furui claimed Tianjin Shunhang had not fulfilled the contract terms requiring the reaching of debt settlement agreements with creditors.

Under the termination agreement, Shunhang Shipping will return RMB60m of the RMB100m down payment to Wenhua Furui as a settlement. However, CSC Phoenix didn’t reveal the reason for the contract termination.

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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