CHINA Cosco Holdings Co plans to purchase dry-bulk vessels from its parent, China Ocean Shipping (Group) Co, as imports of iron ore, coal and grain soar and push up rates.
China Cosco Holdings has agreed to buy the world's largest fleet of dry-bulk ships for CNY34.6 billion (US$4.58 billion) in cash and stock.
A report by China Daily said the shipping line announced it will buy 412 vessels from its parent in a filing to the Hong Kong stock exchange.
The company plans to issue 864.3 million Shanghai-listed shares valued at CNY16 billion to its parent and pay the rest in cash, part-funded by a share sale.
China Cosco intends to sell 432.7 million new Shanghai-listed shares worth CNY9.39 billion to 10 unidentified institutional investors, pending government approval. China Ocean Shipping will buy its Shanghai shares at CNY18.49 each, or 15 per cent less than the July 25 closing price, the report added.
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