Cosco Pacific boosted its war chest to bid for a stake in a state-owned terminal in Greece after pocketing US$1.2 billion from selling its container manufacturing associate to its parent firm Cosco Group.
Shares in Cosco Pacific rose 4.07 per cent to HK$11.24 yesterday after it announced the deal on Monday night.
The sale of a 21.8 per cent stake in China International Marine Containers (CIMC), the world's largest box manufacturer, was estimated to produce a pre-tax paper gain of US$490 million for Cosco Pacific, a report by Credit Suisse said yesterday.
However, the port operator will lose a major income source. CIMC posted net profit of 219 million yuan (HK$277 million) in the first quarter, equivalent to 12 per cent of the earnings of Cosco Pacific, which reported US$66 million in net profit in the quarter. The sale is subject to shareholders' approval.
Cosco Pacific said the proceeds would be invested in new terminals and container units.
Tasos Vamvakidis, a deputy commercial director of Piraeus Container Terminal, a subsidiary of Cosco Pacific, said last month in Athens that they were interested in furthering investment at the port in order to enhance its position in the area.