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Xinghua is exploring a sale: Bloomberg
Posted on Thursday, 21 May 2020 11:57
A controlling shareholder in China’s Xinghua Port Holdings is planning a disposal of a majority stake in the logistics group, people familiar with the matter told Bloomberg.
Sources told the news provider that a deal could value the business at USD 200.00 million, including debt.
Chairman and controlling shareholder Patrick Ng, who owns 61.0 per cent of Xinghua with his family, is working with an advisor to sound out possible interested buyers, the insiders observed.
He has reportedly reached out to companies such as Shenzhen International Holdings and Zhuhai Port.
Shares in Xinghua rose 3.9 per cent to HKD 1.06 (USD 0.14) at 16:08 today, giving the business a market capitalisation of HKD 863.28 million.
There is no guarantee of a deal taking place as no final decision has been made, therefore Ng could still decide to hold onto the company, Bloomberg observed.
Xinghua was previously a unit of Pan-United before listing on the Hong Kong Stock Exchange in 2018.
It operates two multipurpose ports that have 16 berths in Changshu, all of which can accommodate vessels up to 85,000 deadweight tonnage.
The ports operator posted net income of CNY 78.60 million (USD 11.07 million) in the year ended 31st December 2019, up 55.0 per cent from CNY 50.70 million in the previous 12 months.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 20 deals targeting port and harbour operators announced worldwide in 2020 to date.
In the largest of these, Port and Free Zone World acquired the remaining 19.5 per cent in United Arab Emirates-based DP World for USD 7.87 billion.
Peel Ports Group, Ningbo Zhoushan Port and Adani Abbot Point Terminal, among others, have also been targeted in the year so far.
© Zephus Ltd