Cosco Pacific looking to acquire stake in Chinese port prior to Hong Kong listing
Cosco Pacific is reportedly in negotiations over a possible investment in the Chinese Port of Qingdao.
Speaking to the South China Morning Post, Alex Chen Bin, general manager of the investor relations department at Cosco Pacific, who already operate two terminals in Qingdao, said that the shipping giant is looking to invest in the Chinese port prior to its public listing on the Hong Kong stock exchange in the near future.
“We heard through informal channels that the company’s going to be listed in Hong Kong,” said Chen Bin.
“We are now in discussions, but nothing can be announced yet.”
The news of Cosco Pacific’s potential investment in Qingdao follows hot on the heels of an expressed interest by China Merchant Holdings, who last month claimed that it too was looking to acquire a share in the Yellow Sea port.
According to the South China Morning Post, the Port of Qingdao was looking at an initial public offering (IPO) of up to US$300 million in June. However, this is thought to have risen to around $500 million over the past two months.
Quingdao Port, which saw cargo throughput jump 11 percent year-over-year to 230.5 million tonnes during the first-half of the year, is mainland China’s largest port for crude oil and likewise iron-ore imports.