Dalian COSCO Shipping Energy Supply Chain (Dalian COSCO Energy), a wholly-owned subsidiary of COSCO Shipping Energy Transportation (CSET), proposes to acquire the entire equity interest in COSCO Shipping LPG Transportation (Shanghai) Co. (Shanghai Liquefied Gas) from COSCO Shipping Investment Dalian.
The proposed transaction is described as the next step in CSET's integration of COSCO Shipping Group's energy and chemical logistics supply chain.
Shanghai Liquefied Gas is a holding company whose primary asset is one very large LPG carrier (VLGC), the Changxingyuan. The agreed consideration for the entire equity interest is RMB598.29 million ($82 million).
This price was determined based on an independent appraisal using the asset-based approach, reflecting the market value of the vessel asset held by the target company. The consideration will be funded approximately 60 per cent by external financing and 40 per cent by internal resources.
The company said the acquisition is intended to consolidate CSET's LPG transportation assets, allowing Dalian COSCO Energy, as the unified operating platform for the LPG business, to achieve unified management and enhance market competitiveness.
This follows the first phase of integration completed in late 2024. CSET expects the acquisition to improve its financial profitability, accelerate subsequent reforms, and create favourable conditions in the capital market for future major projects.
