Hong Kong-listed commodity trader China Qinfa Group says that it has to delay a potential deal to sell its China shipping assets, as some conditions precedents for the deal have not been fulfilled.
Qinfa Group announced in July that it has reached an agreement with Bo Hai Investment, under which it will sell the entire equity interest in Hong Kong Qinfa International Trading to the latter for RMB176.7m ($26.4m), as part of its restructuring plan. After the disposal, Qinfa Group will quit the shipping business in China and principally be engaged in the provision of international shipping services.
Qinfa Group said some conditions precedents for the deal have not been fulfilled before the planned date of December 31, and it requires additional time to negotiate with third party financial institutions.
The two parties have agreed to extend the long stop date for satisfying the conditions precedents to February 28, 2017.