It was also agreed that Swire and P&O would dispose of their respective shares in SCT Phases 1 and 2. Modern Terminals, which currently holds approximately a 10% interest in both SCT Phases 1 and 2, and CMHI will form a new joint venture company to be known as Mega SCT, into which both parties will consolidate their interests in all three phrases of SCT. China Merchants will initially have a 70% shareholding and Modern Terminals 30% in Mega SCT.
Sean Kelly, managing director of Modern Terminals, said that the consolidation of SCT’s ownership was a positive move that would facilitate operational efficiency and synergy between the various elements of SCT.
“The agreement will also help strengthen Modern Terminals’ position in the Western Shenzhen area. It is an example of our business development strategy in the Pearl River Delta, which is to take advantage of every opportunity to work together with other major players in the course of steadily expanding the scope of our business,” he added.