Sinotrans Shipping, a unit of Chinese state-run shipping and logistics major Sinotrans & CSC Holdings, has announced a trading halt on Hong Kong Stock Exchange.
The company said the trading halt is related to a possible privatisation of the company and it will make a further notice according to the Hong Kong code on takeovers and mergers.
Sinotrans & CSC completed a merger with China Merchants Group in April last year which saw Sinotrans & CSC become a wholly-owned subsidiary of China Merchants. The two groups have been further consolidating their assets through internal restructuring since then.
When contacted by Splash, a spokesperson at Sinotrans Shipping declined to comment on the issue.
An industry source told Splash that China Merchants promised to solve internal competition issues within the group in five years following the merger and have been considering various plans including the privatisation of Sinotrans Shipping.
According to VesselsValue data, Sinotrans Shipping currently operates a fleet of 58 vessels, made up of 41 bulkers, 13 containerships and four tankers.