COSCO is rumoured to be interested in buying Singapore's Pacific International Lines' (PIL) shares in subsidiary Singamas, the world's second largest manufacturer of containers, according to Splash 247
COSCO is rumoured to be interested in buying Singapore's Pacific International Lines' (PIL) shares in subsidiary Singamas, the world's second largest manufacturer of containers, according to Splash 247. Sources in China said that Cosco has put in a bid to take Singamas off PIL's books, providing some cash for the containerline, which has struggled in the first half, sliding to a US$141.2 million loss in 2018, compared to a $26.4 million profit in the first half last year.
In July 2017, PIL pledged its shares in Hong Kong-listed Singamas, in which it has a 41.1 per cent stake, to raise bank loans of around $180 million. PIL said in July last year that it was obliged to sell its Singamas shareholding within 20 months for at least $180 million or at a price acceptable to its creditors.
The deal with Cosco is expected to be finalised in early 2019, marking Cosco's next sizeable acquisition since it took over Hong Kong containerline OOCL a couple of months ago.
Singamas, which was founded in 1988, is a manufacturer of containers, operator of terminals and container depots and provider of logistics services. The company is the second largest container manufacturer in the world after China's China International Marine Containers (CIMC) and has an annual manufacturing capacity of over 1 million TEU, controlling around 20 per cent of the global market share. Singamas currently operates nine container-manufacturing facilities in China.
Cosco is currently engaged in the container manufacturing business through its subsidiary Shanghai Universal Logistics Equipment, which has an annual manufacturing capacity of 500,000 TEU. It also holds around 14.5 per cent equity interest in CIMC, the world's largest container manufacturer with over 40 per cent of the global market share.
Officials at Cosco declined to confirm the Singamas acquisition when contacted by Splash 247.
