1. Same story, different day...........year ie more of the same fiat floods the world
    Dismiss Notice
  2. There are no markets
    Dismiss Notice
  3. Week of 6/24/2017 Closing prices & Chg Over Last Wk---- Gold $1256.40 Silver $16.64 Oil $43.01 USD $96.94
  4. "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"
    Dismiss Notice

China’s Cosco to buy Orient Overseas in $6.3 billion shipping deal

Discussion in 'Coffee Shack (Daily News/Economy)' started by Scorpio, Jul 10, 2017.



  1. Scorpio

    Scorpio Скорпион Founding Member Board Elder Site Mgr Site Supporter ++

    Joined:
    Mar 25, 2010
    Messages:
    23,667
    Likes Received:
    25,085
    Trophy Points:
    113
    China’s Cosco to buy Orient Overseas in $6.3 billion shipping deal

    By Costas Paris and Joanne Chiu
    Published: July 9, 2017 6:26 p.m. ET



    Industry consolidates amid global down-cycle


    [​IMG] Bloomberg News
    A Cosco cargo ship sits docked at the Port of Vancouver terminal in Vancouver, British Columbia.
    Cosco Shipping Holdings Co., China’s biggest shipping company, agreed to buy smaller rival Orient Overseas (International) Ltd. Co. for $6.3 billion, establishing an Asian container giant at a time when the industry struggles to emerge from a multiyear down-cycle.

    The move will see a half dozen supercarriers grouped into three alliances, move about three quarters of all seaborne trade after a wave of consolidation among the world’s top 20 carriers over the past year.

    The Chinese conglomerate joined Shanghai International Port (Group) Co., one of the world’s biggest port operators, to buy a combined 68.7% stake from Orient Overseas’ controlling shareholder, Cosco 600026, +0.62% and Orient Overseas 0316, +20.00% said Sunday in a joint statement.

    The offer price of 78.67 Hong Kong dollars per share (about $10.07) represents a 31% premium over Orient Overseas’ Friday closing price. The deal will have to be approved by global regulators, which is expected in the next six the eight months.

    An expanded version of this report appears on WSJ.com.

    http://www.marketwatch.com/story/ch...erseas-in-63-billion-shipping-deal-2017-07-09
     
  2. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

    Joined:
    Mar 31, 2010
    Messages:
    125,023
    Likes Received:
    36,994
    Trophy Points:
    113
    COSCO Deal to Make Ex-Hong Kong Chief, Family $1 Billion Richer

    July 10, 2017 by Bloomberg

    [​IMG]
    Tung Chee-hwa speaks during the “China and the U.S.: One Belt, One Road and 100-Day Plan,” a discussion hosting high-level delegation of Chinese leaders, in Manhattan, New York, U.S., June 14, 2017. REUTERS/Bria Webb

    By Robert Olsen (Bloomberg) — Former Hong Kong Chief Executive Tung Chee-hwa and his family will be about $1 billion richer with the sale of their container shipping line to Cosco Shipping Holdings Co.

    Tung’s personal net worth will increase by about $400 million to $2.9 billion, according to the Bloomberg Billionaires Index, based on the $6.3 billion Cosco offered for his family’s Orient Overseas International Ltd. Tung, 80, who was chairman of the business before becoming Hong Kong’s first leader during the British handover of sovereignty in 1997, owns 30 percent of the company.

    His younger brother Tung Chee Chen, Orient’s chairman and chief executive officer, holds a 39 percent stake and will boost his wealth by $600 million to about $3.8 billion when the deal is completed. The state-owned shipping giant agreed to pay HK$78.67 for each Orient share, a 31 percent premium over Friday’s closing price. The deal still requires approval from regulators and Cosco investors.

    Tung, currently a vice chairman of China’s top political advisory body, Chinese People’s Political Consultative Conference, was handpicked by Beijing in 1997 for the top job in the financial hub and has been advising the central leadership on foreign policy, especially China-U.S. relations.

    The Tung family, which founded Orient Overseas Container Line in 1969, ran into financial trouble in the 1980s and needed more than $100 million in additional funding that was arranged by Henry Fok, a pro-Beijing property tycoon. Fok, who died in 2006, also played a key role in Beijing’s selection of Tung as Hong Kong’s first leader under Chinese rule.

    © 2017 Bloomberg L.P

    http://gcaptain.com/cosco-deal-make-ex-hong-kong-chief-family-1-billion-richer/
     
  3. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

    Joined:
    Mar 31, 2010
    Messages:
    125,023
    Likes Received:
    36,994
    Trophy Points:
    113
    COSCO Acquisition of OOCL Still Faces ‘Degree of Uncertainty’

    July 26, 2017 by The Loadstar

    [​IMG]
    Credit: Shutterstock.com

    By Mike Wackett (The Loadstar) – Cosco Shipping Holdings resumed trading on the Shanghai Stock Exchange (SSE) today, more than two months after its shares were suspended on the bourse.

    The move brings an end to speculation that Cosco had another carrier target on its radar, after it announced plans to scoop up OOIL’s OOCL earlier this month.

    Nevertheless, there remains some uncertainty that the OOIL transaction will overcome all the regulatory hurdles. The SSE issued a letter of enquiry on 18 July requiring clarification on two specific points of the deal.

    These relate to concerns as to whether the transaction would clear anti-trust and monopoly regulators around the world and how Cosco intends to keep OOIL listed on the Hong Kong Stock Exchange, as committed.

    Alphaliner reports that the SSE received a response yesterday, which it must have found sufficiently reassuring to allow Cosco’s shares to resume trading.

    The consultant said Cosco had confirmed that the transaction was subject to regulatory review in the US and the EU, but apparently made no mention of Chinese or other official bodies.

    Cosco said it held “a positive attitude” to the anti-monopoly reviews based on “preliminary judgements”, but conceded that there existed a “certain degree of uncertainty” over the outcome.

    According to the analyst, Cosco and SIPG, which will buy 9.99%, confirmed they intended to maintain OOIL’s listing status on the HKSE via a series of measures that would include issuing new shares to independent third-party investors.

    They have also pledged to maintain the OOIL/OOCL staff compliment, saying on 9 July they would not “terminate any employee at OOIL, as a result of this transaction, for at least 24 months after the close of the offer”.

    In practice, however, during this period there will be management changes, leading to executives at OOCL “seeking new employment challenges”, which along with natural wastage may change the culture at OOCL.

    One UK recruitment consultant recently told The Loadstar it already had a number of OOCL executives on its books who, he said, were all “highly prized” assets that “would be in demand”.

    The Loadstar is fast becoming known at the highest levels of logistics and supply chain management as one of the best sources of influential analysis and commentary.

    Check them out at TheLoadstar.co.uk, or find them on Facebook and Twitter.

    Filed Under: Maritime News, News Tagged With: cosco oocl acquisition, OOCL

    http://gcaptain.com/cosco-acquisition-of-oocl-still-faces-degree-of-uncertainty/
     
  4. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

    Joined:
    Mar 31, 2010
    Messages:
    125,023
    Likes Received:
    36,994
    Trophy Points:
    113
    OOCL Needed Cash and COSCO’s ‘Weight’ to Compete with Mega-Carriers
    August 7, 2017 by The Loadstar


    By Mike Wackett (The Loadstar) – OOCL was too small to compete with mega-carriers and needed access to a large capital base to succeed, its chairman said today.

    OOCL returned to the black in the first six months of the year, contributing a net profit of $25.3m to the H1 result of its parent, Orient Overseas International Ltd, (OOIL).

    This compares with a loss of $82.4m recorded in the same period of 2016.

    The result was achieved on revenue up 15.2% to $2.6bn and earned from 6.8% growth in the carrier’s liftings, at 3.1m teu.

    The improved return was realised despite the average cost of bunker fuel for its vessels increasing 64% to $306 per tonne from $186 in the same period of last year.

    Mr CC Tung, OOIL chairman, said: “We have begun to see a slow and steady recovery from the tough market conditions that characterised 2016.”

    But he remained cautious, saying the improvement in the supply/demand balance in the liner industry was not a sign of a “booming market”.

    “We are far from that,” he said, but noted that it was the first time since the financial crash that the supply/demand balance had not worsened year-on-year.

    Mr Tung believed that if orderbook suspension discipline could be maintained, “the industry will at least have the chance to start to absorb some of the excess capacity”.

    He said the shape of the liner industry had “changed dramatically” after a wave of mergers and acquisitions and the collapse of Hanjin Shipping. But Mr Tung suggested that, over time, the consolidation would “help to provide a more stable context for the industry”.

    Explaining the rationale behind OOIL’s decision last month to accept a $6bn takeover bid from Cosco Shipping and Shanghai International Port Group, Mr Tung said the deal provided an opportunity to merge “the highly respected OOCL brand” with Cosco’s size and scale and capital base.

    “For years, we have achieved scale benefits by means of alliance membership and the deployment of the right, often the largest, vessels in each tradelane. These techniques, alongside our highly skilled employees, our customer base, our IT system, our focus on cost efficiency and our robust balance sheet, go together to drive the success of our group.

    “However, as the industry consolidates at speed, with the largest players now having millions of teu in carrying capacity, the capital base necessary to operate successfully and to establish a place among the leading industry participants is becoming increasingly sizeable,” explained Mr Tung.

    He said the deal “would create a combined group that would have a very strong chance of maintaining and building a status as one of the very best performers in the industry”.

    OOCL currently operates the biggest, by capacity, containership in the world, the 21,413 teu OOCL Hong Kong, the first of a series of six vessels ordered.

    At group level, OOIL earned some $49m from its property investments, including a $30m revaluation of its Wall Street Plaza property in New York. After tax, its consolidated net earnings for H1 were $53.6m, versus a loss of $56.7m in the same period of 2016.

    The Loadstar is fast becoming known at the highest levels of logistics and supply chain management as one of the best sources of influential analysis and commentary.

    Check them out at TheLoadstar.co.uk, or find them on Facebook and Twitter.

    http://gcaptain.com/oocl-needed-cash-and-weight-of-cosco-to-compete-with-mega-carriers/

    Filed Under: News Tagged With: OOCL

    http://gcaptain.com/oocl-needed-cash-and-weight-of-cosco-to-compete-with-mega-carriers/
     
  5. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

    Joined:
    Jan 7, 2011
    Messages:
    10,807
    Likes Received:
    8,322
    Trophy Points:
    113
    Location:
    Florida
    They should turn those ships into floating apartment buildings and park a few off NYC.
     

Share This Page