CSSC Hong Kong subsidiaries sign deal for two newbuild vessels

CSSC Hong Kong Shipping has announced that its subsidiaries have entered into two shipbuilding agreements for the construction of two new undisclosed type of vessels, signed on July 16. The total consideration for the two ships is RMB1.056 billion ($147.2 million).

The agreements were signed by two of the company's special purpose vehicles with builders Beihai Shipbuilding and China Shipbuilding Trading, which are also subsidiaries of parent company CSSC. The consideration of RMB528 million for each vessel will be paid in five installments based on construction progress.

The vessels are expected to be delivered by December 31, 2027, and March 31, 2028, respectively. The agreements include a liquidated damages clause for delivery delays of up to RMB19.98 million for each vessel.

The company stated the transactions will enable it to optimise its fleet profile. As the buyer and builders are controlled by the same parent group, the deal constitutes a connected transaction under stock exchange rules and is subject to the approval of independent shareholders at an extraordinary general meeting.