China Shipping Group has struck an agreement with compatriot Shanghai Lanhai Shangshou Medical Industry to dispose of its 14.11% stake in Shanghai-listed China Shipping Haisheng, a Hainan-based bulker operating subsidiary of the group.
China Shipping will reap CNY1.03 billion (USD166.0 million) by completing the deal, a stock filing of China Shipping Haisheng said on 4 June.
Shanghai Lanhai Shangshou Medical Industry, a joint venture between Lanhai Holding Group and Shanghai Life Insurance, will take over 82 million shares in China Shipping Haisheng at CNY12.55 per share.
The shares make up 14.11% of China Shipping Haisheng’s share capital. After the planned deal, China Shipping Group will hold 77.8 million shares in the company, making it the second-largest shareholder.
China Shipping Group is a second-largest investor in Shanghai Life.
In addition, China Shipping Haisheng plans to raise CNY2 billion in a private placement to repay debts. The 10 potential subscribers in the private placement are not involved in the shipping industry and the private placement will not lead to an asset restructuring in the industry, the company added.