Breaking: COSCO Shipping, SIPG Offer to Buy OOIL

OOCL Chinas COSCO Shipping Holdings and Shanghai International Port Group (SIPG) have made a pre-conditional voluntary general offer  to all Orient Overseas International Lines (OOIL) shareholders to acquire all issued OOIL shares at an offer price of HK$78.67 in cash.  The offer to acquire the shares in the worlds seventh largest container shipping line would total in USD 6.3 billion. On completion, assuming all OOIL shareholders tender their shares, COSCO SHIPPING Holdings will
hold 90.1%, while SIPG will hold 9.9% of OOIL. OOCL said that the offer is dependent on the necessary regulatory approvals as well as approval from COSCO SHIPPING Holdings shareholders. The controlling shareholder, who currently holds 68.7% of OOIL, has irrevocably undertaken to accept the offer. The transaction marks the latest consolidation in the global maritime industry. It is believed that the combination of COSCO SHIPPING Holdings and OOIL can deliver a stronger competitive advantage. The combined COSCO SHIPPING Lines, a subsidiary of COSCO SHIPPING Holdings, and OOIL will operate more than 400 vessels over a much expanded yet well-structured network, with capacity exceeding 2.9 million TEUs including orderbook.