Cosco Pacific to Buy Terminal Stakes in China

Cosco Pacific is raising just under HK$1.2 billion (US$155 million) through its China-owned parent company Cosco (Hong Kong) Group to buy stakes in container ports in China and in the region.

Cosco Pacific announced on March 24 that attributable profit surged a higher-than-expected 63.2 percent to $586 million for the year ended December. Turnover increased 16.5 percent to $1.12 billion.

Cosco Pacific, which leases containers and operates ports, will buy stakes in four mainland container terminals from Cosco (Hong Kong). It would buy 51 percent of Zhangjiagang Terminal, 50 percent of Qingdao, 10 percent of Shanghai and five percent of Yantian Terminal for a total of $455 million. The agreed price represents a 31 percent discount to their combined net asset value of $655 million, and a 52 percent discount to their appraised value of $954 million. The combined throughput of the four ports last year was 2.2 million teus and is expected to reach 4.6 million teus by 2000.

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