[190611.EN.SEA] China Shipping Group Reorganises Assets

Hong Kong: China Shipping Development has received a letter from its parent China Shipping Group (CSG) to inherit the bulker and tanker businesses to avoid 'horizontal competition'.

“CSG has positioned China Shipping Development as its ultimate, consolidated and unique business platform for oil shipment, bulk shipment and LNG shipment,” the letter dated Wednesday states.


Dry bulk vessels and tankers owned by CSG and the unlisted companies under its control will go under the umbrella of China Shipping Development when deem appropriate.


The assets ownership transfer will be carried out through acquisition or reorganisation within around five years, eliminating the competition in the industry between CSG and China Shipping Development.


China Shipping Development will also take control of dry bulk vessels and tankers leased by China Shipping (HK), a controlling subsidiary of CSG, through asset acquisition and reorganisation over five years.


Before completing the ownership transfer of the dry bulk vessels and tankers, CSG will lease the vessels to China Shipping Development.


Source : STA Online, 16.06.11.