Singapore-listed Cosco Investment Singapore CIS is to pay $14.4 million dollars for 50% in Chinese ship-repair company Nantong Ocean Ship Engineering Company NOSEC.
The move will position NOSEC to raise capital more easily after China's accession to the World Trade Organization, expected some time next year. The expected increase in trade following accession should contribute to an increase in the ship-repair business.
The 50% stake CIS is acquiring is currently divided equally between Japanese company Masahiro Trading and Cosco Industrial Investment. Cosco Shipyard Group owns the remaining 50%.
After the acquisition, CIS and Cosco Shipyard Group will own 50% each of NOSEC.
The transaction is expected to be completed by the end of...
