Shanghai Stock Exchange inquires COSCO over OOIL purchase
TINNews
Shanghai Stock Exchange (SSE) has sent a letter of inquiry to Shangai-based COSCO Shipping Holdings, demanding further clarifications on the acquisition of the Hong Kong-based Orient Overseas International Limited (OOIL).
Earlier this month, the two companies jointly stated that the Chinese giant would offer $6.2 billion for acquiring 90.1% of OOIL, while Shanghai International Port Group (SIPG) would hold 9.9%, upon regulatory approval.
The SSE regulators are giving COSCO until 25 July to make further disclosures on financial details. Specifically, they ask to know how the synergies will be realised after the merger is completed, as well as if there is possibility that the deal might not pass the anti-monopoly review.
In addition, SSE seeks to know how COSCO plans to keep OOIL listed on Hong Kong’s stock exchange, since Hong Kong Stock Exchange rules may not meet the same requirements, upon completion.
