Cosco buys Orient Overseas for $6.3bn

Cosco buys Orient Overseas for $6.3bn”

A Cosco container is seen at the Noatum container terminal near Bilboa Spain June 14, 2017.

Shares in Orient Overseas International Ltd (OOIL) are set to open 24 percent higher on Monday after the Hong Kong container shipping line received a $6.3 billion offer from mainland Chinese giant COSCO Shipping Holdings Co Ltd.

The proposed deal is the latest in wave of mergers and acquisitions in global container shipping that has left the top six shipping lines controlling 63 per cent of the market.

Cosco now has a market share of 8.4 percent while Orient Overseas has 3.2 percent, according to Alphaliner.

Cosco, China's biggest container carrier, will pay shareholders of Hong Kong's No. 1 box mover HK$78.67 a share, a 31 percent premium over the stock's closing price July 7, it said in an exchange filing yesterday.

This would make it the world's third largest container shipping line after Denmark's Maersk Line and Switzerland's Mediterranean Shipping Company (MSC), according to Singapore-based transport research firm Crucial Perspective.

The combined entity will operate more than 400 vessels with capacity exceeding 2.9 million twenty-foot equivalent units, including order book. It is now the fourth-largest behind France's CMA CGM.

The family of Hong Kong's first Chief Executive Tung Chee-hwa founded OOIL, and still holds a 69% stake in the company. "We are confident that Cosco Shipping Holdings is the right partner for us".

Korean shipping giant Hanjin filed for bankruptcy previous year, while France's CMA CGM bought Singapore's Neptune Orient Lines. Shares of the company have rallied nearly 90 percent this year in Hong Kong, boosting its market value to $4.8bn. The company's Shanghai-listed shares have been suspended since May 16.

"After the completion of the offer, the joint offerers intend to retain the listing status of OOIL, and maintain OOIL's global headquarters functions and presence in Hong Kong and continue to support Hong Kong as a global maritime centre", the Chinese group said in the statement.

Like this


10 July 2017
Former Conservative cabinet minister: Theresa May must go
And in the speech, on Tuesday, she will urge other parties to work with her on ideas to tackle "unfairness". But amid the heat of high summer, it looks very much as if a plot is under way at Westminster.

10 July 2017
Vatican bans gluten-free bread for Holy Communion
The bread should be unleavened (made without yeast) and pure wheat, made by persons who are competent and have integrity. The bread used by Catholics for holy communion can not be entirely gluten-free, the Vatican announced Saturday.

10 July 2017
How I will emerge Nigeria's President - Governor Fayose
If you put me the den of lions, the teeth, the claws will go inside; you can find that in the Bible too", he added. Our politics must have where we would stop it and say the truth as may be necessary".

10 July 2017
Cleveland Indians place Jason Kipnis on disabled list with mild hamstring strain
Kipnis was injured during Saturday's win over Detroit while trying to beat out a grounder in the third inning. Kipnis (hamstring strain) was placed on the 10-day disabled list on Sunday.

10 July 2017
Smart Home Speaker Alerts Police To Domestic Assault
Amazon has also been tied to a murder case in Arkansas where an Echo speaker has been tabbed as a potential source of evidence. Police say that Eduardo Barros was house-sitting at the residence with his girlfriend and their daughter.

10 July 2017
Ivanka Trump sits in for dad Donald at G20 leaders meeting
A Russian official tweeted a photograph of Ivanka Trump sitting in between the duo and it immediately went viral. Ms Trump is an adviser to her father, but a leader's absence is usually covered by high-ranking officials.

10 July 2017
Jill Duggar Gives Birth, Welcomes Second Child With Derick Dillard
The Duggar clan just got larger-again! Jill and Derick Dillard are celebrating the birth of the newest member of the Duggar clan. Many Duggar fans expect the family of four to return to Central America after the birth to continue their missionary work.

10 July 2017
Madhya Pradesh farmer uses teenage daughters to plough farm
According to Ashish Sharma, District Panchayat Raj Office, the farmer has been instructed not to use children for such activities. Sardar Barela's daughters, Radhika (14) and Kunti (11), have quit their education due to lack of money or financial support.

10 July 2017
Beijing helps to press Trump over withdrawal from Paris climate accord
"We take note of the decision of the United States of America to withdraw from the Paris agreement ", the communique reads. It confirms that the U.S. is committed to lowering its emissions, so long as this is compatible with economic growth.

10 July 2017
Novo Nordisk AS (ADR) (NVO) EPS Estimated At $0.54
The current share price indicates that stock is -26.95% away from its one year high and is moving 35.77% ahead of its 52-week low. BidaskClub raised shares of Novo Nordisk A/S from a "hold" rating to a "buy" rating in a research note on Thursday, June 15th.