Sembcorp drops Cosco yard equity

Offshore staff

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.


Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Storm Impact Analytics for Utilities

In recent years, increasingly volatile and extreme weather events have significantly impacted the...

Reach New Heights: Six Best Practices in Planning and Scheduling

These 6 best practices have created millions of dollars in value for many global companies. Learn...

Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...