Shanghai International Port Group (SIPG) is planning to dispose of a 20% in Shanghai Mingdong Container Terminal via public tenders on the Shanghai United Assets and Equity Exchange.
SIPG currently holds a 50% equity interest in Shanghai Mingdong with Hutchison Port Holdings owning the other half. Shanghai Mingdong’s profits hit US$101m on revenue of US$276m last year. It also owns part of the Waigaoqiao Container Terminal in central Shanghai.
The sale price of the 20% stake is yet to be determined but an asset evaluation is underway, SIPG said in a filing to the Shanghai Stock Exchange
The disposal of the stake in Shanghai Mingding is expected to meet the requirements of SIPG’s strategic development and enhance the group’s overall business interest, it added.
In October 2004, SIPG and Hutchison Ports Waigaoqiao Ltd. entered into a joint-venture agreement to invest in a container terminal at Shanghai Waigaoqiao Phase V, forming Shanghai Mingdong Container Terminals Ltd. The terminal had a registered capital of $482 million.
In the first half of this year, Shanghai handled 17.24m teu, up 5% year-on-year. Solid exports from China on the back of increasing foreign trade have pushed up the throughput figures at China’s major ports.