Hong Kong: Hong Kong-listed Sinotrans Limited has entered into a framework acquisition agreement with parent company Sinotrans & CSC.
Under the agreement, Sinotrans has agreed to acquire shares in a series of companies which have freight-fowarding, shipping agency, containers lease, warehousing storage and customes declaration operations in Beijing, Shandong, Guangxi ,Fujian, Jiangsu, Hong Kong, Japan and Korea. Total value of the deals is around HK$1.13b.
Sinotrans will acquire full equity in Fujian Ningde, Wide Shine, Jiangsu Fuchang, Jiangsu Jinmao, Sinotrans Japan and Sinotrans South Korea, 70% equity in Sinotrans Wuzhou, 50% equity in Sinotrans Nissan and Sinotrans Yantai, and 32% equity in Zhonglian.
Sinotrans said the acquisition is to facilitate consolidation of core business operations and reduce potential internal competition. [11/07/14]