China Cosco holdings

China COSCO Holdings Company Limited (SEHK: 1919) announced a private placement of 1,300 million A shares to no more than ten designated investors including its parent China Ocean Shipping (Group) Co. on September 3, 2007. The company will issue 864,270,817 shares at CNY 18.49 per share to China Ocean Shipping (Group) Co. for gross proceeds of CNY 15,980.367 million in its first tranche. The company will issue the remaining 435,729,183 shares in its second tranche at a price not less than CNY 18.49.

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China COSCO Holdings Company Limited (SEHK: 1919) agreed to acquire Dry Bulk Shipping Assets from China Ocean Shipping (Group) Company on September 3, 2007, for CNY 15.24 billion based on the closing stock price of China COSCO on September 2, 2007. As per the terms of the transaction, China COSCO Holdings Company Limited will issue approximately 864.2 million new A shares as consideration. The assets acquired by China COSCO Holdings Company Limited include 100% stake ... in Cosco Bulk Carrier Co., Ltd., and Qingdao Ocean Shipping Co. while it will acquire 41.52% stake in Shenzhen Ocean Shipping Co., Ltd. In the event there is a deficiency between the net proceeds from the A shares placing and the consideration China COSCO Holdings Company Limited will use its internal funds available and/or loans from financial institutions. As per the requirements of China Securities Regulatory Commission, the consideration shares to be allotted and issued to China Ocean Shipping (Group) Company by China COSCO Holdings Company will be subject to a 36 months lock-up period during which China Ocean Shipping (Group) Company shall not deal or sell in any of the consideration shares. The transaction is subject to approval of shareholders, approval of the issue of A Shares, governmental and official approvals and due diligence review. The transaction is expected to close by December 31, 2007. Deutsche Bank AG, Merrill Lynch Far East Limited and China International Capital Corporation Hong Kong Limited acted as financial advisors for China COSCO Holdings Company Limited and CIMB-GK Securities (HK) Limited acted as financial advisor for the Independent Board Committee.