COSCO sells stake in SEL

11/14/2012

China Ocean Shipping Co (COSCO) and China Cargo Airlines are to sell their combined stake in Shanghai Eastern Logistics Co, according to statements filed with the Shanghai United Assets and Equity Exchange.

COSCO holds 29.7% and the move marks the group’s withdrawal from the logistics joint-venture. China Cargo Airlines plans to sell its 1% stake in the JV.

Only some major domestic airlines, such as Air China and China Southern, are allowed to buy the stock rights being sold. 

The other major carrier, China Eastern Airlines, gave up its pre-emptive rights. It holds the balance of the shares in Shanghai Eastern Logistics, which was founded in August 2004.

The logistics operator, which has total assets of Rmb1.2 billion (US$190.72 million), is based at Shanghai Pudong International Airport.

The estimated stakes transfer value for Cosco and China Cargo Airlines are Rmb562 million and Rmb19 million, respectively.