DEALS
Zhong Lun Represents COSCO Shipping in its Acquisition of Singamas’ Partial Assets for RMB 3.8 Billion
Zhong Lun Represents COSCO Shipping in its Acquisition of Singamas’ Partial Assets for RMB 3.8 Billion
On May 6, 2019, COSCO SHIPPING Financial Holdings Co., Limited (“COSCO Shipping Financial", a wholly-owned subsidiary of China COSCO Shipping Corporation Limited (“COSCO Shipping")) announced the acquisition of part of container manufacturing assets of Singamas Container Holdings Limited (stock code: 00716.HK), a Hong Kong listed company, at a total price of RMB 3.8 billion. It has initiated the optimization and restructuring of the global container manufacturing industry.
COSCO Shipping is a large-scale state-owned enterprise directly managed by the central government and mainly engaged in terminals, logistics, shipping finance, ship repair and shipbuilding. Moreover, the annual throughput of COSCO Shipping’s container terminal and the global sales volume of bunker fuel both rank first in the world, and container leasing scale ranks the third-largest in the world. Through this acquisition, the container manufacturing market share and capacity scale owned by COSCO Shipping will rank the second in the world. Additionally COSCO Shipping will better utilize the scale effect of the entire manufacturing sector and further enhance the synergy effect in the shipping industry.
Zhong Lun acted as legal counsel to COSCO Shipping Financial in this transaction and provided a full range of legal services including due diligence, structural design, business negotiation and documentation, etc. The Zhong Lun team was led by partner Bill Shang, and the team members included senior associate Tiffany Yan, associates Daisy Liu, Millie Xu and Estella Huang. Partner Xue Yi and associate Gu Tian provided merger control related legal services in this transaction.