Singamas Container Holdings has entered into a framework agreement to dispose of five of its owned subsidiaries for up to RMB4 billion ($596 million), a significant sale that is set to slice the group’s annual twenty-foot equivalent container production capacity by at least half.
Hong Kong-listed Singamas said the potential purchaser is looking to acquire Qidong Singamas Energy Equipment, Qingdao Pacific Container, Ningbo Pacific Container, Singamas Container Holdings (Shanghai) Limited, and Qidong Pacific Port for RMB3.5 billion to RMB4 billion.
Qidong Pacific Port is one of Singamas’ 11 depots in China, while the remaining four subsidiaries are among its nine Chinese factories. Qidong Singamas Energy Equipment has the largest production capacity amongst all the nine factories, with annual production capacity of 270,000 teu of dry freight containers and 60,000 teu stainless steel refrigerated containers.
Qingdao Pacific Container and Ningbo Pacific Container have annual production capacity of 120,000 teu and 110,000 teu, respectively.
According to information, the five factories that Singamas are keeping include Huizhou Pacific Container, Qingdao Pacific Container, Shanghai Baoshan Pacific Container, and Qidong Singamas Offshore Equipment.
