China Shipping Development completes share swap deal

China Shipping Development Co (CSDC) has completed a share swap deal to welcome Wuhan Iron and Steel (Group) Corp as the second biggest shareholder of the state-owned shipping firm.

Wuhan has taken 4.17% stake in CSDC while the parent firm China Shipping Group (CSG) remains the controlling shareholder with 42.2%, down from 46.36%.

The deal was approved by the State-owned Assets Supervision and Adminstration Commission of the State Council.

The planned share swap was first announced in October this year.

Wuhan has been a major customer of CSDC, utilising the shipowner’s dry bulk carriers. The latest deal is expected to bring about larger volumes of long term contract of affreightment for the Chinese shipowner.
Source: Seatrade Global