Lai Sun Hotels International (LSHI) and Cosco (HK) Property Development are reviewing the possibility of managing hotels in China for the mainland's biggest shipping group after the property company's purchase of a 20 per cent stake in LSHI a week ago.
China Ocean Shipping Co, the parent of Cosco (HK) Group and its property arm, has six hotels under the flagship of Ocean Hotels - in Beijing, Tianjin, Shanghai, Guangzhou and Qingdao.
Cosco (HK) Group yesterday said the $610 million acquisition of the 20 per cent stake would lift its property interests before being injected into its 61 per cent-owned listed subsidiary Shun Shing Holdings.
Cosco (HK) Group president Zhang Dachu yesterday said the plan to inject Cosco (HK) Property's assets would be finalised after a general offer for Shun Shing.
'Through property injections, this will get [Cosco (HK) Property] listed in a shorter period,' he said.
Cosco (HK) Property has been established for a year but the stock exchange requires a three-year track record before a company goes public.
Its acquisition of the stake in LSHI makes it the second largest shareholder after Lai Sun Development, which owns 54 per cent.