COSCO SHIPPING Holdings has agreed to pay 5.5 billion yuan ($814 million) to buy a 5.8 per cent stake in logistics company COFCO Fortune.
As reported by Reuters, this move is part of COFCO Fortune’s capital increase plan, which will see COFCO and other units of the conglomerate retain a combined 69.8 per cent stake in COFCO Fortune – down from 89.7 per cent previously.
The deal will allow COSCO SHIPPING Holdings and COFCO Fortune to explore operations involving resources such as container yards, warehouses, and terminal ports.
In addition to COSCO SHIPPING Holdings, other investors who have subscribed to COFCO Fortune’s capital increase plan comprise a number of state-affiliated entities – including the management council of China’s basic pension insurance fund and the asset management division of China Life Insurance.
A fund associated with private equity firm Hopu Investments, Houke Fulin, also took part in the capital increase.
The German government approved the acquisition of a minority stake of less than 25 per cent in CTT in October 2022, stressing that neither CTT, nor HHLA, nor the Port of Hamburg will be sold to China.
