COSCO Shipping offers $6.3 billion for Orient Overseas
OOIL's shipping subsidiary, OOCL, has a 2.7 percent slice of the market.
COSCO Shipping is offering HK$78.67 for each OOIL share, a premium of 37.8 percent over OOIL's closing price of HK$57.10 on its last trading date, the companies said in filings with the Hong Kong and Shanghai stock exchanges on Sunday.
OOIL's controlling shareholders had on Friday agreed to sell their 68.7 percent stake at that price to COSCO Shipping, which is making the offer with Shanghai Port International Group (SIPG) that will take 9.9 percent, they said.
COSCO Shipping will have a fleet of more than 400 vessels and capacity exceeding 2.9 million TEUs (twenty-foot equivalent units) should the deal go through, it said.
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. It is currently the fourth-largest behind France's CMA CGM . ■