Pursuant to agreement, CSES will acquire a 51% interest in COSCO Xiamen from CSG and the remaining 49% interest from Xiamen Ocean Shipping, a subsidiary of China Ocean Shipping (Group).
COSCO Xiamen is in the business of ship repair, inspection and maintenance of life-rafts, marine fire-fighting equipment and systems inspection and repair, lifeboat and davit inspection and maintenance, marine evacuation system inspection, maintenance and testing, ship spare parts and materials supply.
The value of the acquisition is RMB2.6 million (USD 0.39 m) and was determined on a willing-buyer willing-seller basis after taking into account the net tangible asset value of COSCO Xiamen of approximately RMB 1.9 million as well as the performance of the business over the past years. The purchase will be done in cash.
The above transaction is not expected to have a material impact on the net tangible assets or earnings per share of the company and its subsidiaries for the financial year ending 31 December 2016.