Mainland port operator Cosco Pacific will sell its 20 per cent stake in Hong Kong-based Chong Hing Bank for HK$2.08 billion to its parent.
The sale price includes 87 million Chong Hing shares held through investment vehicle Bauhinia 97 and a HK$1.3 billion loan due from Bauhinia.
Cosco Pacific said it would book a HK$701.2 million one-off gain from the sale to China Ocean Shipping (Group).
It added that the deal valued Chong Hing Bank shares at HK$24 each or a 33.19 per cent premium to the closing price on Friday, or 68.42 per cent premium to the bank's net asset value of HK$14.25 as of the end of June.
Describing the Chong Hing stake as a non-core investment, Cosco Pacific said it would reinvest the proceeds from the sale in new and existing container terminal projects.
