Cosco Shipping enters JV to grow logistics supply chain value in S-E Asia
Tessa Oh
MAINBOARD-LISTED Cosco Shipping International has entered into a joint-venture (JV) agreement with Supply Fortune to invest in logistics infrastructure assets.
Through these investments, they seek to grow the logistics supply chain value in South-east Asia, and plan to also lease the assets for rental income, the logistics management service provider said in a bourse filing on Tuesday (Mar 7).
Under the agreement, Cosco Shipping will subscribe for 49 per cent of the issued and paid-up share capital of the JV company, while Supply Fortune will subscribe for the remaining 51 per cent.
Supply Fortune is a wholly-owned subsidiary of Cosco Shipping Holdings (Hong Kong), which in turn is a wholly-owned subsidiary of Cosco Shipping Holdings.
The controlling shareholder of Cosco Shipping International is China Cosco Shipping Corporation, which owns the entire equity interest of Cosco Group. Cosco Group holds 53.4 per cent of shares of Cosco Shipping International and 36.8 per cent of shares in Cosco Shipping Holdings.
Accordingly, Supply Fortune is an associate of Cosco Shipping Corporation, making the JV an interested person transaction under the Singapore Exchange listing rules.
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The company said that the JV will create a digital supply chain investment platform, which will help to improve the service capability of the whole supply chain and provide customers with more high-quality and diversified digital supply chain products and solutions.
Through the JV, the group will also be able to further develop the supply chain market in South-east Asia, derive industry supply chain value, enhance the supply chain products in the region, and improve the level of end-to-end business customer service.
The agreement is not expected to have any material impact on the net tangible assets and earnings per share of the company for the financial year ending Dec 31, 2023.
Shares of Cosco Shipping International closed S$0.002 or 1.2 per cent higher at S$0.17 on Tuesday, before the announcement.
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