China Merchants and COSCO Shipping have announced a public proposal to sell 70 percent of their shares in the Dunjiakou iron ore terminal in China. These shares are being auctioned through the Hong Kong Stock Exchange, and the auction will remain open until November 11.
Details of Shares and Ownership Structure
China Merchants and COSCO Shipping each hold 25 percent of the shares in this terminal, while the Singapore-based company IMC holds another 20 percent. The remaining 30 percent of the shares belongs to Qingdao Port International. These shares are being auctioned as a single package in the stock market, with a minimum bid price set at $287 million for the entire stake.
Performance and Importance of the Dunjiakou Terminal
The Dunjiakou terminal is responsible for the construction, operation, and management of iron ore loading facilities in one of China’s main loading areas. This terminal is designed to accommodate the largest iron ore bulk carriers in the world. The terminal, with a deadweight tonnage (dwt) capacity of 400,000 tons, has been operational since 2013, enabling the port to accommodate very large bulk carriers engaged in trade between Brazil and China.
China Merchants has stated that this sale could help them realize the value of their investment and enhance their financial flexibility. Additionally, COSCO Shipping has described this divestment as part of a broader strategy to optimize resource allocation and support the development of their future businesses.
If this deal is finalized, all selling shareholders will exit the terminal company, and the auction winner will gain majority control along with Qingdao Port International.
