Nearly 43 billion! COSCO COSCO Group acquired Eastern overseas

Hongkong finance Societe Generale Securities France

xinlangcaijing· 2017-07-10 09:23:20

The merger and reorganization of the

container shipping industry has been increasing since last year. This time, the wharf operators were also involved.

first financial reporter today from COSCO Group was informed that the company's COSCO Cmi Holdings Ltd (hereinafter referred to as "COSCO sea control", 601919.SS; 1919.HK) joint Shanghai international port (Group) Limited by Share Ltd (hereinafter referred to as "the Hong Kong Group, 600018.SS), will be HK $78.67 per share to Orient Overseas (International) Co., Ltd. (hereinafter referred to as" OOCL ", 0316.HK) shareholders issued a prerequisite of comprehensive voluntary cash offer, offer a fully accepted hypothesis and the completion of the transaction, COSCO Haikong east overseas will hold 90.1% stake in the Hong Kong Group stake of 9.9%.

the tender offer assumes that the total cash value payable by the shareholders of the company subject to the acceptance of the shares shall be approximately HK $49 billion 231 million, with a total of 42 billion 870 million yuan. The offer is subject to prior terms of approval, including the necessary regulatory approvals and approval by COSCO shareholders. At present, the controlling shareholder holding 68.7% of the shares of the Orient has made an irrevocable commitment to accept the offer.

Orient Overseas is the seventh largest container shipping company in the world, and COSCO Container Group has reached the fourth place in the world by merging the two major domestic shipping groups, COSCO and China shipping. If the acquisition is completed, COSCO COSCO Shipping and sea control under the Orient Overseas container fleet, the total capacity of the two companies will total more than 2 million 900 thousand TEUs (including orders), operating over 400 aircraft fleet, the fleet size will exceed the CMA cgm.

according to the reporter, after the transaction is reached, the Orient Overseas (OOCL) brand will be retained, because the two companies are members of the marine alliance, so it can continue to cooperate under the framework of the alliance.

combined with the offeror has promised in the transaction after at least two years to continue to hire employees and orient overseas to maintain the existing salary and welfare system, in addition, the offeror intends to retain United Orient Overseas Listing in Hongkong and the Orient Overseas status, headquarters and management to continue to stay in Hongkong.

COSCO sea control chairman Wan Min said that COSCO COSCO is committed to the construction of Hongkong international shipping center, and after the completion of the acquisition, the company will increase investment and provide a broader platform for the development of overseas employees.

, it is worth noting that, in 2016, "mergers and acquisitions" has become the largest shipping industry keywords img_box. From the beginning of January last year, COSCO and China shipping, two domestic shipping group, Sinotrans Group merged into China Merchants Group, CMA-CGM acquisition Nol, a series of mergers and acquisitions of Lloyd acquisition of Arabia will come with the ship.

to understand according to the reporter's information, COSCO and China Shipping Group container shipping network assets reorganization and restructuring has been completed, in order to further reduce costs, such as the route network, it will save about $200 million of the cost.

also pointed out that COSCO Haikong in a quarterly, double positive effect in the market has stabilized and the effectiveness of reform and restructuring, the company's first quarter net profit attributable to shareholders of listed companies of about 270 million yuan, is expected at the beginning of the next reporting period, the cumulative net profit over the same period last year will be greatly improved.

in fact, shipping companies, which have been enjoying years of losses, have seen the dawn of shipping as the concentration of the shipping industry has risen and the supply and demand relations have improved. A number of domestic and international shipping giants previously announced a quarterly performance report shows that, compared to 2016 shipping performance as a whole is still showing a slight deterioration in the first quarter of 2017 performance improved significantly.

according to Societe Generale Securities statistics, the domestic shipping listed companies in 2016 overall net loss of 5 billion 400 million yuan, while the first quarter of 2017 earnings of 1 billion 600 million yuan. As the shipping company is more than non recurring profits and losses, the deduction of non performance more reflect the actual business situation, 16 years of shipping industry buckle non loss 7 billion 200 million yuan, 17 years in the first quarter of non profits are 1 billion 500 million yuan.

the number of industry insiders on the first financial reporter pointed out that the speed of supply capacity decreased significantly since the beginning of the year, cargo ship delivery rate of less than 50%, bulk capacity growth of less than 2%, while the recovery in Global trade, shipping demand side has been warmer, the global container transport demand is expected to have 2% to 4% growth. "With

significantly enhance the concentration of the cargo container shipping industry, after the relationship between supply and demand in 2017 is expected to 2011 for the first time to achieve marginal balance, no longer continue to deteriorate, dry bulk and container transport industry is expected to usher in a recovery. Societe Generale Securities analyst Li believes that the first quarter because of the Spring Festival factors, is the industry off-season, but the recovery has been opened, the two or three quarter will gradually turn the market, the industry upside space.

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