Cosco Shipping Development Buys Used Containers Worth $200m
CHINA Cosco Shipping Group’s container leasing arm has agreed to buy 154,000 units of used containers for about $200.4m, in an effort to expand scale with an increased number of self-owned boxes.
According to MANA, Under the agreement, Florens Container Investment (SPV) — a wholly owned subsidiary of Cosco Shipping Development — will act as the buyer and CLC II Company the seller, according to an exchange filing.
Shanghai- and Hong Kong-listed CSD is the leasing and banking outfit of Cosco Shipping.
CLC II is incorporated in Bermuda with a registered HNinvestment vehicle of CLC Maritime Container Leasing, a Hong Kong-based vessel and container leasing service provider. CLC II and its ultimate beneficial owners are not affiliated parties of CSD, the filing added.
CSD said the acquisition was line with the its goal to expand and become a leading player in the container leasing industry. “In addition, the acquisition would increase the proportion of self-owned containers of the group and ensure that the group’s demand for containers is satisfied,” the company added.
Container shipping giant China Cosco Shipping Group earlier this week offered to buy Hong Kong-based Orient Overseas International Ltd for $6.3bn.
The enlarged company will operate more than 400 vessels, with capacity exceeding 2.9m teu. Cosco has a market share of 8.4% while Orient Overseas has 3.2%, according to Alphaliner. Their combined 11.6% would make the merged entity the third-biggest container shipping company, overtaking CMA CGM with an 11.2% market share.