China Merchants Holdings International Company (CMHI) has purchased approximately 1,180 million H-shares in Dalian Port, in Liaoning province, China.
The share agreement is worth approximately HKD4.332bn ($558m) or HKD3.67 per H-share.
The subscription shares accounts for an estimated 26.67% of the existing issued share capital of Dalian Port and 21.05% of the issued share capital of Dalian Port as enlarged by the allotment and issuance of the subscription shares.
CMHI chairman of the board of directors said: "The entering of a share subscription agreement, which allows CMHI to become the second largest shareholder of Dalian Port after the completion, is one of the key strategic investments for CMHI to further improve the layout of existing ports network and to position the company to become a global leading comprehensive port-service provider going forward.
"Dalian Port, being a major shipping centre in Northeast Asia and a hub in Northeast China, is of great strategic significance.
"The strategic and economic value of Dalian Port will gradually materialise, with, on one hand, the Government's plan of implementing measures to revitalise the economies of Northeastern region of China, and on the other hand, the establishment of China-Japan-South Korea Free Trade Area."
Dalian Port is equipped with port infrastructure offering operational technology and management and has a strategic geographical location.
It has diverse range of dedicated ports, including a 450,000t crude oil terminal which accounts being the world's largest.
There are currently 88 international shipping routes and 13 international direct lines calling at Dalian Port, covering and connecting to more than 160 countries and 300 terminals around the world.
Image: A view of the Dalian port. Photo: courtesy of China Merchants Holdings International Co., Ltd.