Cosco sells major stake in Cosco Shipping Leasing to state fund

Cosco Shipping Development has announced that it has entered into an agreement with Chengtong Fund Management to sell a 35.22% stake in Cosco Shipping Leasing for a price of RMB1.8bn ($275m).

Chengtong signed the agreement on behalf of Mixed Ownership Reform Fund, a fund to be established by the central government’s State-owned Assets Supervision and Administration Commission (SASAC) to promote mixed ownership reform among state-owned enterprises. 

The target size of the fund is RMB200bn ($30.58bn) and the fund will have 20 initial shareholders. Cosco and port operator SIPG both committed to join the fund.

Additionally, Cosco has approved a plan for one strategic investor to increase the capital of Cosco Shipping Leasing by at least RMB1bn and no more than RMB3bn.

“The disposal under the equity transfer agreement will facilitate the Group’s focus on the strategic development objective as a shipping financing platform, whereby the Group can make use of the proceeds from the disposal to acquire additional vessels and/or containers for the purpose of conducting lease transactions as lessor so as to expand its shipping and industry-related leasing business,” Cosco said.