[photopress:slogistics_inotrans45s.jpg,full,alignright]China National Foreign Trade Transportation, the nation’s logistics giant, is pushing ahead with plans to sell more assets to its listed unit, Sinotrans. The company is listed on the Hong Kong stock exchange.
Last October, Sinotrans, a partner of global players such as Deutsche Post’s, DHL and Korean Air, agreed to buy RMB1.11 billion ($156.2 million) worth of freight forwarding, shipping agency and warehousing businesses from its state-owned parent.
China National now plans to sell a second batch of assets to Sinotrans. That means it will have floated all of its key assets on the market.
China National President Zhao Huxiang who is also the chairman of Sinotrans said that the assets, located in Hunan, Jiangxi and other provinces, will help to fill out Sinotrans’ network and enhance efficiency.
He did not say when this would happen although it seems likely it will be this year.
He said China National’s two Hong Kong-listed units, Sinotrans and Sinotrans Shipping Ltd, would continue to expand via mergers and acquisitions. He added that both companies are cash-rich and would not need to raise funds.
Shares of Sinotrans Shipping have fallen 24% this year and Sinotrans has dropped 33%, underperforming a nearly 20% loss in the index of Chinese companies listed in Hong Kong .
Chairman Zhao Huxiang said Sinotrans continued to show good business growth and the U.S. sub-prime debt crisis had very limited impact on Sinotrans and Sinotrans Shipping.
Source: Reuters