Shanghai Stock Exchange has sent an inquiry letter to China Cosco Shipping Holdings, demanding more details on the company’s recent offer to take over Hong Kong’s OOIL.
On July 9, Cosco and SIPG jointly announced a deal to take over OOCL’s parent, OOIL, at an offer price of $6.3bn.
The stock exchange has requested information on the necessary prerequisites of the deal including the possibility the deal might not pass the anti-monopoly review, and Cosco’s plans to deal with the creditors of OOIL.
In addition, Cosco was asked to provide certain details of the valuation methods in the deal.
One key question from the Shanghai Stock Exchange is how Cosco will maintain the listing status of OOIL. The stock exchange’s concern is the ratio of public shareholding may not meet the requirements of the Hong Kong Stock Exchange after the completion of the deal.
Cosco has been given a deadline of July 25 to respond the letter.