SINGAPORE – Sembcorp Marine Ltd. has entered into a sale and purchase agreement with China Ocean Shipping (Group) Co. (COSCO) to dispose of its 30% equity interest in Cosco Shipyard Group Co. Ltd. (CSG).
CSG is a ship repair, conversion and shipbuilding group in China which owns six major shipyards that are located in coastal cities: from Dalian, Nantong, Shanghai, Qidong, Zhoushan, and Guangzhou. The company first announced its acquisition of the 30% stake in CSG in 2004.
Following completion of the disposal, the company will cease to have any interest in CSG except via its 4.98% shareholding in Cosco Corp. (Singapore) Ltd., which in turn has a 51% equity interest in CSG.
Sembcorp said the decision is being undertaken because CSG is “no longer a strategic investment nor a core asset of the group.” It will use the net proceeds from the proposed sale for working capital.