COSCO Shipping offers US$6.3bn to acquire OOIL

COSCO Shipping has offered to acquire all the shares in Orient Overseas Container Line’s (OOCL) container shipping business, in a move that would make the Chinese state-owned carrier the third largest line in the world.

The offer price for each OOIL shares is HK$78.67 (US$9.34), totalling HK$49.23bn) (US$6.30bn) in cash while the Hong Kong-based carrier last closed on HK$57.10 (US$6.78).

OOIL’s controlling shareholder, which currently holds a 68.7%stake in the carrier, has irrevocably undertaken to accept the offer although regulatory approvals are still necessary as well as approval from COSCO Shipping shareholders.