Ningbo Port has set sights on buying out 85% of outstanding stake in Zhoushan Port from parent Ningbo Zhoushan Port Group, Ningbo Port Group said in a Shanghai Stock Exchange (SSE) filing.
The purchase is to be financed from the proceeds to be collected from share sale, a total of expected USD 457.5 million.
The deal forms part of the merger transaction between the two Chinese ports.
Once the stake purchase is completed, Ningbo Port will hold 90.0% stake in Zhoushan Port.
Ningbo Port Group completed the merger with Zhoushan Port Group, creating the world’s busiest port in terms of cargo tonnage with a combined annual throughput of 843.7 million tons, in September 2015.
The new company is named Ningbo-Zhoushan Port Group Co., with its ownership divided between Ningbo and Zhoushan branches of the state-owned Assets Supervision and Administration Commission.
The merger is part of Zhejiang government’s plan to integrate operations of the ports of Ningbo, Zhoushan, Jiaxing, Taizhou, and Wenzhou through the recently established port investment and development company.
World Maritime News Staff