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COSCO SHIPPING Development to Sell A Shares and H Shares of CIMC for RMB6.34 Billion

October 21, 2020

Hong Kong – Paul Hastings, a leading global law firm, announced today that it has advised COSCO SHIPPING Development Co., Ltd. (Stock Code: 2866.HK and 601866.SH) (“COSCO SHIPPING Development”)  on its disposal of A shares and H shares of China International Marine Containers (Group) Co., Ltd. (Stock Code: 2039.HK and 000039.SZ) (“CIMC”). Hong Kong and Shanghai-listed COSCO SHIPPING Development is principally engaged in shipping and industry-related leasing businesses, manufacturing of containers and provision of investment and financial services.

Pursuant to the share transfer agreement, COSCO Container and Long Honour (each being a wholly-owned subsidiary of COSCO SHIPPING Development) have agreed to sell an aggregate of 645,010,617 CIMC shares, comprising 350,000,000 A shares and 295,010,617 H shares, to Shenzhen Capital Operation and Shenzhen Capital Hong Kong (the ultimate beneficial owner of which is the State-owned Assets Supervision and Administration Commission of Shenzhen) for an aggregate consideration of RMB6.34 billion (approximately US$945.18 million). The transfer involves approximately 17.94% of the total issued share capital of CIMC. The equity interest of COSCO SHIPPING Development in CIMC will decrease to approximately 4.69% upon completion, while CIMC will continue to be an associate of COSCO SHIPPING Development. The proceeds from the disposal of shares will primarily be used for loan repayment for the optimization of asset structure.

With a long-standing relationship with COSCO SHIPPING Development, Paul Hastings previously represented the company in various transactions, including its repurchase of A shares and H shares for up to RMB300 million in 2019 and the merger between CS Finance, a non-wholly owned subsidiary of COSCO SHIPPING Development, and COSCO Finance in 2018.

The Paul Hastings team was led by Raymond Li, global partner and chair of Greater China, and corporate partner Bonnie Kong, with support from associate Andy Tam and trainee solicitor Beatrice Wun.

 

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