An announcement was issued by COSCO SHIP ENGY (01138) stating that Dalian Ship Energy, a wholly-owned subsidiary of the company, intends to enter into an equity acquisition agreement with COSCO Shipping, an affiliated party of the company. Under the agreement, COSCO Shipping will sell its entire equity interest in COSCO Shipping Dalian Investment to Dalian Ship Energy for approximately RMB 1.585 billion. Upon completion of the transaction, the company, through its direct wholly-owned subsidiary, will hold a 100% stake in COSCO Shipping Dalian Investment. As a result, COSCO Shipping Dalian Investment and its subsidiaries will each become subsidiaries of the company.
As of the date of the announcement, the target group includes not only COSCO Shipping Dalian Investment but also its wholly-owned subsidiary, Dalian COSCO Ship Energy Liquefied Gas Transport Co., Ltd., and its non-wholly-owned subsidiary, Dalian Ship Energy Storage and Transportation. The move is in response to the call for state-owned enterprise reform and aims to deepen the integration of the energy supply chain. Starting in 2024, the company has been gradually integrating equity and assets related to the energy and chemical logistics supply chain of COSCO Shipping Group through a "acquisition + trusteeship" approach. Under the Trusteeship Agreement, Dalian Investment has already been placed under the company's management.
The proposed acquisition is intended to consolidate high-quality assets and businesses of Dalian Investment, such as ultra-large VLGCs under construction and logistics park storage facilities, into the company. This will help achieve the goal of integrating energy and chemical transportation resources, strengthen the company's diversified business structure in oil, gas, chemicals, and storage, and solidify the foundation for high-quality development.
The transaction also aims to unify the operation and development of liquefied petroleum gas (LPG) and hydrogen-based green energy businesses, enhancing synergies. By incorporating Dalian Investment into the company’s scope, and having Dalian Ship Energy—a specialized entity engaged in LPG transportation and hydrogen-based green energy integrated logistics—acquire a 100% stake in Dalian Investment and carry out a merger for unified operation and management, the profitability of Dalian Ship Energy is expected to improve. This will also boost the company's market competitiveness in the LPG and hydrogen-based green energy sectors.
Additionally, the acquisition will reduce connected transactions and fulfill commitments to avoid同业竞争, thereby improving governance standards. Injecting high-quality assets and businesses such as Dalian Investment’s VLGCs under construction and logistics park storage facilities into the listed company will reduce transactions between the company and its controlling shareholder and related parties. This fulfills the commitment made at the outset of the integration project to avoid同业竞争 and enhances the company's governance standardization and transparency.
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