COSCO Shipping International has launched a US$364 million cash buyout of Cogent Holdings, a Singaporean logistics company, while it also considers buying Indonesian shipping and logistics company PT Ocean Global, reports Singapore's Business Times.
Analysts have long said Cosco would look to invest into the logistics sector, especially after abandoning its shipyard business, reported London's Port Technology.
Cosco's financial adviser for the deal, the Bank of China, will extend a multimillion loan facility to part fund the takeover, said the Business Times.
Cosco Shipping recently reported a third quarter 16.6 year on year-on-year throughput increase.
The best performing segment in 2017 for Cosco thus far is the group's overseas ports, which had the biggest quarterly volume increase at 43.5 per cent.
State-owned Cosco owns 1,114 ships, including 365 dry bulk vessels, a container fleet with a capacity of 1,580,000 TEU and a tanker fleet of 120 vessels.