Chinese state-run shipping company Cosco Shipping Holdings has agreed to acquire a 5.8% interest in COFCO Fortune for CNY5.5bn ($814m), reported Reuters.
The purchase of this stake in the logistics and food processing arm of COFCO, a state agricultural conglomerate, forms part of the business’ strategy to boost capital.
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Upon completion of the deal, the interest of COFCO and its other units in COFCO Fortune will be diluted from 89.7% to 69.8%, according to a Cosco stock exchange filing.
Cosco and COFCO Fortune plan to explore operations linked to warehouses, terminal ports and container yards.
The filing stated that Houke Fulin, a fund tied to private equity company Hopu Investments, also took part in the capital raising.
Multiple state-affiliated entities, such as the management council of China’s basic pension insurance fund and China Life Insurance’s asset management unit, also subscribed to the capital increase plan.
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By GlobalDataLast October, Cosco announced the acquisition of port assets from its parent entity for $2.7bn.
This included the purchased of a 3.2% stake in Guangzhou Port as well as a 14.9% holding in Shanghai International Port Group.
In the same month, Cosco Shipping Port secured the German Government’s approval to acquire a minority stake of below 25% in HHLA Container Terminal Tollerort (CTT) at the Port of Hamburg, which was less than the 35% stake initially agreed upon in September 2021.
Cosco will not gain exclusive rights to the terminal, which will have the city of Hamburg as its main shareholder.
