China COSCO Strives to Return to Profitability with Proposed Sale of COSCO Logistics to Controlling Shareholder
BEIJING, March 11, 2013 /PRNewswire/ -- China COSCO Holdings Company Limited ("China COSCO" or the "Group") (HKEx:1919, SSE:601919) put forth a preliminary proposal in an announcement to sell a 100% interest in its directly-owned subsidiary COSCO Logistics Co., Ltd. ("COSCO Logistics") to its controlling shareholder China Ocean Shipping (Group) Company ("COSCO Group"). The board of directors has approved commencing with related processes. Details of the proposed transaction are still in negotiation. Given the uncertainties surrounding it, all investors are advised to pay attention to the investment risks involved. The Group will make public announcement on the progress of the proposed transaction in due course.
In order to protect the fundamental interest of shareholders, China COSCO has prudently come up with this proposal after a comprehensive consideration on its sustainable growth capability and profitability. The Group expects that if the transaction is approved and carried out on a timely basis, it will generate reasonable capital gain which can help boost the Group's operating results in 2013 and reduce the risk of its stock being suspended from trading on the A-share market.
China COSCO is upbeat about China's and the global macro-economic environment and international trade in the long run. It firmly believes that the shipping industry will stage a rebound from the trough and move in an uptrend. Moreover, COSCO Group reiterates that it will continue to use China COSCO as a platform to tap into capital markets. Meanwhile, China COSCO will have a priority to acquire COSCO Logistics back from COSCO Group when overall conditions are favourable.
All in all, the Group will push ahead with the operating principles of "boosting sales, adjusting business structure, reinforcing management and exercising stringent cost controls". Any measures that can help improve the Group's overall profitability, drive sustainable growth and protect the long-term interests of shareholders will be given careful consideration and implemented at full strength after thorough discussion, review and approval according to the established procedures.
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About China COSCO:
China COSCO Holdings Company Limited ("China COSCO", together with its subsidiaries collectively known as the "Group"), is a leading global integrated shipping and logistics services provider. The Group provides comprehensive shipping services including container shipping, dry bulk shipping, logistics, terminal operations, container leasing, freight forwarding and shipping agency services. It commands leadership in each of business sector. China COSCO operates the largest dry bulk fleet in the world. Its container fleet is the fourth largest in the world and the largest in China. Its terminal operation and container leasing business are ranked the fifth and the third respectively in the world, while its logistics business is the largest in China. The Company was listed on the Hong Kong Stock Exchange in June 2005 and the Shanghai Stock Exchange in June 2007 respectively. As the financing platform of COSCO Group, China COSCO is determined to becoming a leading global shipping and logistics enterprise.
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SOURCE China COSCO Holdings Company Limited