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.

11/16/2016

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

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...