COSCO Haineng (01138) plans to acquire shares and assets related to COSCO SHIPPING's Dalian Investment and Shanghai COSCO SHIPPING to integrate the energy and chemical logistics supply chain

Zhitong Finance App News, COSCO Haineng (01138) announced that the company plans to carry out the proposed acquisition and sign a proposed entrustment management agreement. The details are as follows: (1) Dalian Liquefied Gas (a wholly-owned subsidiary of the company) and COSCO SHIPPING Dalian Investment prepared an equity transfer agreement. Based on this, COSCO SHIPPING Dalian Investment agreed to sell and Dalian LPG agreed to acquire: (i) 70% of Shenzhen Longpeng's shares, at a cost of about RMB 277 million ;( ii) 87% of Hainan Zhaogang's shares, at a cost of approximately RMB 3.15 billion (iii) Nakajima Port's 15 % equity, at a cost of RMB 0;

(2) Dalian Liquefied Gas and COSCO SHIPPING Dalian Investment have drawn up a Dalian Investment Asset Transfer Agreement. According to this, COSCO SHIPPING Dalian Investment agreed to sell, and Dalian LPG agreed to buy two ships at a total cost of about RMB 211 million (excluding VAT);

(3) The company and Shanghai COSCO SHIPPING drew up a Shanghai COSCO SHIPPING share transfer agreement, according to which Shanghai COSCO SHIPPING agreed to sell, and the company agreed to acquire: (i) 100% of CNOOC Chemical's shares at a cost of about RMB 507 million; (ii) 100% of Hong Kong Chemical's shares, at a cost of approximately RMB 113 million; and

(4) The company has drawn up a proposed entrustment management agreement with COSCO SHIPPING and Shanghai COSCO SHIPPING, according to which the company agreed to entrust management: (i) COSCO SHIPPING's investment in Dalian; (ii) 100 million litres of warehousing, shipping warehousing and Fujian Wharf held by COSCO SHIPPING in Shanghai for a period of 3 years. The escrow fee for COSCO SHIPPING Dalian's investment is RMB 8 million per year (excluding VAT), and the total hosting fee for 100 million litres of storage, shipping storage, and Fujian Wharf is RMB 2.6 million per year (excluding VAT).

According to the announcement, the company-led integration of COSCO SHIPPING's energy and chemical logistics supply chain is an important measure to implement state-owned enterprise reform, optimize resource allocation, and improve the company's quality. After the proposed acquisition is completed, the company will focus on important measures to integrate energy and chemical logistics resources, achieve collaborative development, and better serve customer needs. It is a key engine for building an energy and chemical logistics supply chain, building industry benchmarks, and better service management upgrades. After the completion of this proposed acquisition, it is expected to increase the company's net profit attributable to shareholders of the parent company in the long run, which is conducive to improving the company's overall operating performance and having a positive impact on improving the company's ability to continue operating.

The proposed entrustment management agreement mainly entrusts the company to manage and operate the energy and chemical logistics supply chain assets held by COSCO SHIPPING Group and Shanghai COSCO SHIPPING. The company will give full play to its professional management and operation advantages to improve the quality of management of the trusteeship target. At the same time, the company will collaborate with the trusteeship target to improve its control over aspects related to the energy and chemical logistics supply chain, which is conducive to giving full play to the company's professional management and operation advantages.