Chinese state-run logistics giant Sinotrans has entered into an sale and purchase agreement with CITIC Capital and FountainVest for the disposal of 51% interest in its subsidiary China Merchants Loscam, a supply chain equipment manufacuturer, for RMB2.475bn ($356m).
The move is part of Sinotrans’ ongoing efforts to restructure its business network. Following the sale, China Merchants Loscam will no longer be an affiliate company of Sinotrans.
Sinotrans & CSC, the parent of Sinotrans, merged with China Merchants Group last year, and China Merchants transferred all its logistics assets to Sinotrans.
Sinotrans believes the disposal will bring substantial cash flow for the company, which enables the company to continue its resources integration.
Sinotrans Shipping, the shipping unit of Sinotrans, is currently planning a privatisation.