COSCO Shipping International (Singapore) has received an approval from its shareholders for the sale of equity interest in its shipyard assets, proposed in May 2017.
The company said that it organized an Extraordinary General Meeting (EGM) to seek shareholders’ approval for the proposed disposal. The resolutions relating to the equity disposal were put to the meeting and duly passed on poll vote.
Under the proposed sale, COSCO Shipping International would dispose of a 51% equity interest in COSCO Shipyard Group, a 50% equity interest in COSCO (Nantong) Shipyard and a 39.1% equity interest in COSCO (Dalian) Shipyard.
The shipyard assets would be sold for a price of CNY 1.46 billion (USD 211.5 million) to COSCO Shipping Heavy Industry.
The company opted for the move in an effort to centralize operations and management by exiting from a loss-making business.
COSCO Shipping International intends to use the sale proceeds to fund future projects, which may include mergers and acquisitions, and for working capital requirements of the Group.