CMPort acquire 60% share from
Shantou SPG to strengthen the layout in Southeast China
On 10th April 2017, China Merchants Port Development (Shenzhen) Company Limited (“CMPDS”), a subsidiary of China Merchants Port Holdings Company Limited (“CMPort” or the “Group”, HKSE code: 0144), entered into the Subscription Agreement with the State-owned Assets Supervision and Administration Commission of the Shantou Municipal Government (“Shantou SASAC”) and Shantou Ports Group Corp Co., Ltd. (“SPG”), in relation to the subscription of equity interest in SPG. Pursuant to the Subscription Agreement, CMPDS shall subscribe for equity interest to be issued by SPG for a total consideration of RMB5,432 million (equivalent to approximately HK$6,118 million). Upon completion of the subscription, CMPDS will hold 60% of the equity interest in SPG and the remaining 40% equity interest in SPG will be held by Shantou SASAC. On the same day, CMPDS also entered into the New Articles and the Land Cooperation Agreement in connection with its investment.
SPG located in the middle of the gold coast line from Fuzhou to Guangzhou with Taiwan strait on its east, the port is 214 miles from Kaohsiung ,187 miles from Hong Kong, and only 10 miles from the major international shipping line. SPG lies on the important node of the pearl river delta region and Hercynian economic belt, and is the closest port from Taiwan in the Guangdong district, also the major estuary and transport hub of the five cities in east Guangdong. SPG currently operates five port zones in Shantou with a total of 22 berths in operation. In year 2016, SPG handled total throughput of 24.48million tonnes, in which container throughput 1.16million TEUs, an year on year increase of 8.1%.
CMPort has, in recent years, been actively exploring and, as and when deemed appropriate, capturing available opportunities as one of the means to effectively add new growth drivers to its existing and sustainably growing ports business. The investment by the Group into SPG will allow the Group to control the ports assets in Shantou currently operated by SPG and will further strengthen the Group’s port network in Southern China.
SPG port distribution map
Recently, SPG is transforming from low-level river port to high-level deep water port through remodeling the old port zone while developing the new. After the upgrade of the berths, SPG will be able to better fulfill the docking of mega vessels, so as to attract more businesses to the district.
CMPort is a leading port investor and operator in China with international presence. At present, the Company’s investments and operations span across China Coastal areas including Hong Kong, Shenzhen, Shanghai, Ningbo, Qingdao, Tianjin, Zhanjiang, Xiamen Bay, and Taiwan, and internationally, in Sri Lanka, Nigeria, Djibouti, Togo, the United States and a number of countries in Asia, Europe and the Mediterranean region.