Hong Kong-based port and terminal operator China Merchants Port (CMP) has announced the acquisition of stakes in the operator of the Shanghai Port, Shanghai International Port Group (SIPG).
Between 9 March to 19 April, CM Port Development, a wholly-owned subsidiary of CMP, acquired an aggregate of 328,750,659 SIPG shares through on-market purchases on the Shanghai Stock Exchange. The average price per share was RMB5.76 (US$0.89) for an aggregate consideration of RMB1,894 million (US$294 million).
Upon the settlement of the acquisition, China Merchants Port would be interested
in 6,531,312,845 SIPG shares, representing approximately 28.06% of the total
issued share capital of SIPG.
CMP said its directors, having considered the market conditions and the financial performance and the prospects of SIPG, are of the view that the acquisition presented a good opportunity for the Group to increase its shareholding in SIPG and utilise its available funds for a return.
“As the acquisition was made at market price and on the open market of the Shanghai Stock Exchange, the directors considered that the terms of the acquisition are fair and reasonable, on normal commercial terms and in the interests of the company and its shareholders as a whole,” stated China Merchants Port in a statement.
CMP noted that the acquisition was settled in cash and funded by internal resources of the company.
