COSCO Shipping plans to sell 60% stake of its SG subsidiary

Cosco Shipping International says its Singapore arm's dry bulk shipping business lacks competitiveness.

SGX-listed Cosco Shipping International plans to dispose of its 60% stake in Cosco Shipping Singapore for a price consideration of approximately $57.01m (US$42.391m).

It will be sold to Cosco Shipping HK, a wholly owned subsidiary of Cosco Shipping Bulk Co., which in turn is wholly owned by Cosco Shipping Singapore's indirect controlling shareholder China COSCO SHIPPING  Corporation Limited.

The transaction is a part of the company's plans to streamline its current structure to focus on its core logistics business.

In a bourse disclosure, Cosco Shipping International said that Cosco Shipping Singapore's dry bulk shipping business has limited market capability and lacks market competitiveness.

This deal is subject to the approval of the company's shareholders.