Shanghai International Port Group Co (SIPG) is all set to acquire 79.2% stake in intra-Asia container line Shanghai Jinjiang Shipping for up to RMB1.94bn ($312.58m).
SIPG plans to buy a 48% stake in Jinjang Shipping currently owned by Shanghai International Group, as well as a 31.2% stake held by Shanghai Jiushi Corporation.
Shanghai Jinjiang Shipping, short-sea container carrier serving the coast and Taiwan Strait, is operating throughout East Asia. The company’s current fleet of 12 container ships, ranging in capacity from 764 TEU to 1,098 TEU, operates throughout Japan, China, Vietnam and Thailand.
Established in 1983, Jinjiang posted a net profit of CNY75.64 million (US$12.1 million) and a revenue of CNY1.56 billion in 2013. The company also operates two warehouses in Waigaoqiao, Shanghai, which are adjacent to Waigaoqiao port.
If the transaction is successful, Jinjiang Shipping will become the second short-sea container carrier owned by SIPG. The company already owns Shanghai Hai Hua Shipping (HASCO) which operates a fleet of seven boxships, with six vessels under construction.