COSCO, CSG Merger Talks to Extend into January
China COSCO Holdings Company Limited (COSCO) said in a stock exchange filing that the suspension of trading of its stocks should be over in January.
Namely, the company said that the suspension should not exceed two-month period beyond November 10.
The trading has been suspended in anticipation of a major announcement on the company’s asset restructuring, which is believed to be connected to a merger with its compatriot China Shipping Group (CSG).
The announcement was further substantiated by a stock exchange filling from CSG’s subsidiary, China Shipping Development, which said that the suspension of trading of its parent’s stocks was to continue into January. As disclosed, the unfreezing would coincide with COSCO’s deadline, namely two months after November 10.
The government of China has reportedly ordered the merger of two of the country’s largest state-owned shipping companies at the beginning of August.
Following the announcement, both Cosco and China Shipping Group, and their respective subsidiaries, suspended trading from stock exchanges in anticipation of a “major announcement.”
World Maritime News Staff; Image: COSCO
