Shanghai Stock Exchange questions Cosco over OOCL takeover deal

Shanghai Stock Exchange questions Cosco over OOCL takeover deal

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.

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.

Related Posts