Sembcorp Marine Ltd has entered into a sale and purchase agreement to dispose of its 30% equity interest in COSCO Shipyard Group Co., Ltd., (CSG) to China Ocean Shipping (Group) Company, COSCO said in its press release.
Modec Venture 11 Repair and renewal of FPSO vessel (Image for illustrative purposes only) - Photo courtesy: Sembcorp Marine
Following the completion of this transaction, Sembcorp Marine Ltd will cease to have any interest in CSG except via its investments of 4.98% shareholdings.
The completion of the disposal is conditional upon the fulfilment of certain conditions. Upon completion of this transaction, the equity interest of COSCO Group in CSG will increase from 3% to 33%, the equity interest of the company in CSG will remain unchanged at 51%, and the equity interests of Shanghai Ocean Industrial Company and Guangzhou Ocean Investment Management Company (which are also subsidiaries of COSCO Group) in CSG will remain unchanged at 8% each.