Cosco shares to remain suspended on parent's uncertain transaction

SHIPPING firm Cosco Corporation said on Friday the trading in its shares will remain suspended.

Cosco had on Aug 11 requested a trading suspension of its shares pending an announcement which relates to the plan by its parent firm China Ocean Shipping (Group) company on a significant transaction that may have an impact on the company's securities, and which may or may not materialise.

On Friday, it said: "After making enquiries with its parent company, China Ocean Shipping (Group) company, the company understands that the proposed significant transaction is still under intensified planning and that, as the above transaction is relatively complicated and may involve asset reorganisation, it is still pending further study and analysis.

"Given that there is material uncertainty and the company is not able to ascertain if the proposed transaction may or may not have a material impact on the company's securities, in order to ensure fair disclosure of information, safeguard the interest of investors and prevent unusual fluctuation of share prices of the company, the trading in the shares of the company will continue to be suspended.

"The company will make announcements of any material development in relation to this matter at the appropriate junctures."

Its shares last traded at S$0.375 on Aug 6.