SS Teo’s Singamas Container Holdings has announced that it has entered into a framework agreement with a potential purchaser for the disposal of five of its wholly-owned subsidiaries.
The five subsidiaries, namely Qidong Singamas Energy Equipment, Qidong Pacific Port, Qingdao Pacific Container, Ningbo Pacific Container and Singamas Container Holdings (Shanghai), will be sold together for a price of between RMB3.5bn ($520m) and RMB4bn ($596m).
The deal will see Singamas sell five out of nine container and equipment manufacturing factories in China.
Singamas believes that the potential disposal will be favourable to the transformation and upgrading of the group’s traditional business, which includes shifting the group’s business focus to logistics services and the manufacturing, R&D and sale of specialised containers.
Additionally, the company reckons the sale will facilitate the implementation of the group’s differentiated development strategy for the container industry and it sees rising demand for personalised and customised high value-added specialised containers.
The potential deal is still being negotiated and no definitive transaction agreement has been signed.