COSCO SHIPPING Ports proposes Qingdao ore terminal exit
COSCO SHIPPING Ports has proposed selling its 25 per cent stake in Qingdao Port Dongjiakou Ore Terminal through a public tender, as part of a combined 70 per cent stake sale.
In an announcement dated 16 October, the company said its wholly owned subsidiary, COSCO SHIPPING Ports Investments (Shanghai), would offer its holding alongside those of Mighty Star Investment Limited and IMC Qingdao Port Investment.
The three shareholders propose selling their interests together through the China Beijing Equity Exchange (CBEX). The public tender notice will remain open until 11 November 2026.
The minimum bidding price for the combined 70 per cent holding is RMB1,917,691,160 ($286.8 million). Of this, RMB684,889,700 ($102.4 million) relates to the Shanghai subsidiary’s 25 per cent stake. The tender process will determine the final price, which cannot fall below the aggregate minimum.
As of the announcement date, no buyer had been confirmed, and no definitive agreement had been signed. COSCO SHIPPING Ports said the proposed disposal might not proceed and advised shareholders and potential investors to exercise caution when trading its securities.
The terminal company is principally responsible for the construction, operation and management of Qingdao Port Dongjiakou Ore Terminal. Qingdao Port International owns 30 per cent, while the Shanghai subsidiary and Mighty Star each hold 25 per cent. IMC owns the remaining 20 per cent.
Completion would leave COSCO SHIPPING Ports with no equity interest in the terminal company. The group said the proposed exit formed part of its overall strategic planning, allowing it to realise its investment and reallocate resources to support future business development.
The sale will follow Chinese laws and regulations governing transfers of state-owned assets. The CBEX tender notice sets out the terminal company’s principal financial information, details of the sellers, proposed transaction terms, bidder eligibility requirements and bidding procedures.
Based on the minimum price attributable to the Shanghai subsidiary’s holding, all applicable transaction ratios under Hong Kong’s listing rules are below 5 per cent. On that basis, the proposed sale would not constitute a notifiable transaction under Chapter 14.
However, the buyer and final consideration remain undetermined. COSCO SHIPPING Ports said it would reassess the transaction’s listing-rule implications once the tender process had concluded and those details were known.
