China Ocean Shipping Company (Cosco) announced yesterday (Sunday) that, along with the Shanghai International Port Group (SIPG), it had made an offer to acquire all issued shares of Chinese logistics company Orient Overseas International Limited (OOIL).
“This decision has been carefully considered and we believe it helps ensure the future success of OOIL,” said OOIL’s executive director, Andy Tung.
The controlling shareholders of OOIL – who currently hold 68.7% of all shares – have already accepted the offer, and assuming all shareholders tender their shares, Cosco will hold 90.1% while SIPG will hold 9.9%.
“By leveraging the strengths of each company and achieving synergies, the businesses will enhance their operating efficiencies and competitive positions to achieve sustainable growth in the long term,” said a Cosco spokesperson.
Completion of the offer is dependent on certain preconditions being satisfied as well as regulatory approvals.
