COSCO Consortium Prepares Proposal for Major Stake in CCCC Dredging
COSCO SHIPPING Ports Ltd. announced on Friday, Aug. 23, that its subsidiary Shanghai Terminal has sent a proposal to enter into a consortium agreement with COSCO SHIPPING Tianjin and other investors to acquire up to 40% equity shares in CCCC Dredging.
The total value of the proposed deal is estimated to cost around RMB13.5bn ($1.9bn).
As reported, the Consortium will seek to acquire a maximum of 5,519,895,784 CCCC Dredging Shares (representing approximately 40% of the enlarged issued share capital of CCCC Dredging) from CCCC on an equity exchange in the PRC by way of participation in a public tender process.
CCCC Dredging is the largest dredging company in the world and its dredging business accounts for approximately 70% of the market share in the domestic market.
According to COSCO SHIPPING, the proposed investment in CCCC Dredging by the Group would contribute to the carrying out of the Company’s strategy of extending its global footprint to build a global terminal network with highly efficient and cost-effective services to serve shipping alliances globally.
They also added that that, with the proposed investment in CCCC Dredging, the Company could leverage on the brand and global recognition and the rich experience in overseas dredging projects of CCCC Dredging to further extend its international presence, align with the “Belt & Road Initiative” and strengthen its leading position as a global port operator.