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BIZCHINA / Center |
CSCL may return to A-share by year endBy Tu Lei (chinadaily.com.cn)
Updated: 2007-10-17 15:10 China Shipping Container Lines Co Ltd (CSCL), a major container shipping company, is busy purchasing stocks under its parent for A-share listing, according to today's Beijing Business Today. CSCL announced it has signed agreements with China Shipping Investment Co Ltd, China Shipping Agency Co Ltd, and China Shipping Logistics Co Ltd (Hainan) to purchase all CSCL stocks owned by the three companies. The stocks are 10 percent, 20 percent, and 30 percent stakes in those three companies respectively. The shipper also signed a series of seven agreements with China Shipping Investment to purchase the latter's entire 10 percent stake in CSCL, scattered amongst the latter's Xiamen, Dalian, Guangzhou, Qingdao, Shanghai, Shenzhen and Tianjin branches. CSCL's Hainan branch also signed an agreement with China Shipping Agency to purchase the latter's 10 percent stake in CSCL. CSCL will pay 41.40 million yuan (US$5.50 million) for the above-mentioned agreements. And all the stocks of the subsidies, under parent China Shipping (Group) Company, will be included into CSCL after purchasing. This move is regarded as preparation for the upcoming return to the A-share market in Shanghai before the end of 2007, said analysts familiar with the matter. CSCL's general manager Huang Xiaowen said it is expected to raise 19 billion yuan when listing by year end. In August, CSCL said it planned to issue no more than 3.337 billion A-shares, accounting for 20 percent of total capital stocks. The raised funds will be used to order container ships and purchase assets in container transportations. Analysts said the successful issue will increase State-owned assets' value-added ratio to more than 300 percent. Shares of CSCL surged as much as 17 percent to a record high on Monday. The stock hit a high of HK$8.19 before retreating slightly to HK$8.05, up 15 percent in late trading. |
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