Qingdao Port lures terminal operator Cosco Pacific
Cosco Pacific in talks to buy a stake ahead of the port firm's listing in Hong Kong after China Merchants also expresses its interest earlier
Container and terminal giant Cosco Pacific is looking to invest in Qingdao Port before the port operator goes public in Hong Kong next year.
Cosco Pacific, which has two terminals in the port, said it intended to be the group's promoting shareholder before its listing.
We heard through informal channels that the company's going to be listed in Hong Kong. We are now in discussions, but nothing can be announced yet
"We heard through informal channels that the company's going to be listed in Hong Kong," said Alex Chen Bin, general manager of the investor relations department at Cosco Pacific. "We are now in discussions, but nothing can be announced yet."
The company is following in the footsteps of China Merchants Holdings (International), whose executive vice-chairman Li Jianhong said in June that it wanted to acquire a stake in Qingdao Port.
A senior manager from China Merchants, which already has a joint venture with the port, said becoming a shareholder could further deepen co-operation.
"Qingdao Port has a wide variety of cargo-handling capabilities, including iron ore, coal, fertilisers and paper. For terminals handling bulk cargo, a comprehensive logistics system with seamless connectivity is particularly important," said the manager, who asked not to be named.
Qingdao Port, the mainland's biggest port for crude oil and iron-ore imports, was reported two months ago to be planning an initial public offering of up to US$300 million, but the amount is said to have risen to US$500 million since then.