China Merchants Holdings becomes the second largest shareholder of Dalian Port
China Merchants Holdings (International) Company Limited, on 12 January 2016, the Company, Dalian Port (PDA) Company Limited and the placing agent entered into a share subscription agreement, pursuant to which, Dalian Port agreed to allot and issue, and the Company agreed to subscribe for approximately 1,180 million H-shares of Dalian Port at a consideration of approximately HK$4,332 million (or HK$3.67 per H-share). The subscription shares represent approximately 26.67% of the existing issued share capital of Dalian Port as at the date hereof, and approximately 21.05% of the issued share capital of Dalian Port as enlarged by the allotment and issuance of the subscription shares. On the same day, the Company received a letter of commitment from the parent company of Dalian Port, Dalian Port Corporation, in respect of the acquisition, pursuant to which, Dalian Port Corporation agreed to allow certain voting commitment for the directors and supervisors of Dalian Port to be nominated by the Company.
Being one of the flagship enterprises in the port industry in Liaoning province, Dalian Port has global leading ports infrastructure, operational technology and management, and is situated in a superior geographical location. Dalian Port also has a wide range of dedicated ports, including a 450,000-tonne crude oil terminal, which is currently the worldЁЏs largest, a 400,000-tonne ore terminal, a global leading container terminal that could accommodate mega vessels, and an automobile terminal, which handled 68.5% of the imported crude oil, 96.7% of international containers and 100% of foreign traded vehicles in North-eastern China. There are currently 88 international shipping routes and 13 international direct lines calling at Dalian Port, covering and connecting to more than 160 countries and 300 terminals around the world.
In 2014, as cargo throughput handled by Dalian Port reached 350 million tonnes, cargo throughput of the overall Dalian port zone reached 420 million tonnes, enabling the port zone to become the ninth largest port in the world and the seventh largest port amongst the coastal ports in China. Containers throughput handled by Dalian Port was 10.01 million TEUs, thus driving the overall DalianЁЏs region containers throughput to 10.13 million TEUs, enabling the overall container operation in Dalian to become the fourteenth largest container port in the world and the seventh largest amongst the coastal ports in China. Revenue of Dalian Port reached RMB 11.44 billion, an increase of 23.3% year-on-year, with a net profit of RMB 650 million, an increase of 14.4% year-on-year.
