Shanghai International Port Group, the main operator of the world’s busiest port, has announced its plan to sell 20% of a terminal firm that it jointly owns with Hutchison Port Holdings, Lloyd’s List reports.
SIPG said it will seek regulatory approval to auction the stake in Shanghai Mingdong Container Terminals, which operates Phase Five and Phase Six of the Waigaoqiao area.
The former is owned by Mingdong itself, while the latter is leased in.
Mingdong, half owned by SIPG and half by HPH, has one 100,000-tonne, two 70,000-tonne, four 50,000-tonne and two 3,000-tonne berths, according to its website.
“This proposed sale meets the requirement of our strategic development and can benefi t our actual operations,” SIPG said in a filing on the Shanghai bourse. The proposal has come after SIPG earlier this year agreed to move some domestic transhipments to Taicang from Waigaoqiao. Most of the volume is to be handled by Taicang Port SIPG Zhenghe Container Terminal, a joint venture between SIPG and Taicang Port Group.
According to the filing, SIPG plans to auction the 20% stake on Shanghai United Assets and Equity Exchange, with the fi rst offer set at no less than 20% of Mingdong’s valuation, minus proposed distributable profits during January-June.