JOC Staff | Mar 12, 2013 3:23PM EDT
China Cosco Holdings has preliminarily proposed to sell 100 percent of its directly owned subsidiary Cosco Logistics to its controlling shareholder China Ocean Shipping (Group) Co.
The board of directors has approved beginning related processes, but details of the proposed transaction are still in negotiation.
China Cosco Holdings expects that if the transaction is approved and carried out on a timely basis, it will generate reasonable capital gain that can help boost its operating results in 2013 and reduce the risk of its stock being suspended from trading on the A-share market.
China Cosco said that it will have priority to reacquire Cosco Logistics from Cosco Group when overall conditions are more favorable.