Dalian Port is preparing to launch a Mainland initial public offering to help fund the acquisition of assets from its parent firm, which itself is seeking to consolidate ports in the northeast of the country.
Dalian Port chairman Sun Hong said the Hong Kong-listed state-backed operator of petroleum, container and vehicle terminals planned to acquire assets from its parent, PDA Corporation. Note Sun Hong is also PDA’s general manager,
Only about 33% of PDA’s total assets of more than US$4.4 billion are listed, but it is too early to tell how much of them will be sold to the listed vehicle, as well as how big and how soon the planned share sale will be.
CargoNews Asia reports that PDA, the operator of China’s third-largest port by assets, wants to take a leading role in consolidating Liaoning’s ports, a move being pushed by the provincial government.
The plan is in line with the central government’s proposal to build a coastal economic zone in Liaoning, which is striving to expand its role as a northeast Asian transhipment hub.