Reklam
Reklam
Reklam
Reklam
Reklam

Cosco said to be eyeing PIL after it bought Singamas box factories

CASH-STRAPPED Pacific International Lines (PIL) of Singapore, is ripe for takeover by the China Cosco Group, according to Paris container research house Alphaliner

Cosco said to be eyeing PIL after it bought Singamas box factories

CASH-STRAPPED Pacific International Lines (PIL) of Singapore, is ripe for takeover by the China Cosco Group, according to Paris container research house Alphaliner

13 May 2019 - 19:00

CASH-STRAPPED Pacific International Lines (PIL) of Singapore, is ripe for takeover by the China Cosco Group, according to Paris container research house Alphaliner.

If such a deal went through, it would place Cosco very close to the Mediterranean Shipping Co's (MSC) 3.73 million TEU capacity and ranking as the world's No 2 carrier.



'Cosco remains the front-runner in any potential takeover of PIL, due to close historical ties and the complementary route network,' said Alphaliner.



'Although PIL has repeatedly denied it is for sale, it remains an attractive takeover target with an established market presence in the Africa, Latin America, Middle East, South Pacific and intra-Asia trades,' said Alphaliner.



What prompts renewed speculation is PIL's sale of container maker Singamas' three container factories in China to Cosco.



The privately owned carrier is the only remaining unencumbered mid-scale acquisition candidate among the top 15 container lines, given Yang Ming's, HMM's and Zim's government links.



Alphaliner believes the share of the US$565 million proceeds from the Cosco purchase 'may not be sufficient to forestall the sale of cash-strapped PIL', reports London's Loadstar.



Alphaliner data reveals PIL operates a fleet of 119 containerships - 77 owned and 42 on charter - with a capacity of 374,030 TEU, and is ranked 10th with a 1.6 per cent market share.



Alphaliner said that, as at June last year, PIL was sitting on $3.46 billion of debt, of which more than $1 billion was short-term, payable within 12 months, and according to its last publicly available figures, PIL recorded a net loss of $141 million for the first six months of 2018.



Alphaliner suggested that, to raise cash, PIL could sell its 41 per cent shareholding in Singamas, valued at $657 million at the end of 2018.



It also said that to meet its short-term cash needs PIL had agreed 'various sale-leaseback deals for its fleet of containerships in the last few years'. According to vesselsvalue.com data, these ships are still recorded as 'owned' by PIL, with a market value of $2.1 billion and a scrap value of $712 million.


WORLD SHIPPING

This news 397 hits received.