Chu Kong Shipping Development has agreed to set up two joint ventures with its ultimate parent to carry out shipping transportation business between Hong Kong, Macau and the ports of the Pearl River Delta as well as conducting freight forwarding business in Shenzhen.
The agreements were entered into on December 23. The relevant parties also entered into non-competition agreements on the same day.
As the agreements are with connected persons of the company, they constitute connected transactions which are conditional upon, among other things, approval by independent shareholders.
Chu Kong will hold 49 per cent in the shipping transportation joint venture, with the remainder held by Guangdong Zhu Jiang Shipping (GDZJ), a ship-owning company ultimately controlled by Chu Kong's controlling shareholder.
The move will allow Chu Kong to be involved in cargo shipping transportation business between Hong Kong, Macau and the ports of the Pearl River delta.
At present, Chu Kong does not own any vessels operating routes in the area.
Total investment stood at 46.1 million yuan (about HK$42.87 million), and will be met by a cash contribution of 22.6 million yuan by Chu Kong and a transfer by GDZJ of 19 vessels worth a combined 23.5 million yuan owned by it.