The offer of HK$78.67 a share is at a 31 per cent premium to OOIL’s closing price on Friday and has already been accepted by the controlling shareholder, CC Tung, whose family owns a 68.7 per cent stake.
OOIL’s share price popped 19 per cent on Monday to HK$71.45.
OOIL was established in 1950 by Mr. Tung’s father, CY Tung, after fleeing from communism in mainland China. Once one of the sector’s most profitable operators, it has struggled to recover fully from the sharp downturn that hit the industry in the global recession of 2008.
After CY Tung’s death in 1982, the line had to be rescued by a consortium including mainland Chinese banks. The relationship with the mainland was close enough for CH Tung, CC Tung’s brother and predecessor as chief executive, to be appointed Hong Kong’s first chief executive under Chinese rule in 1997.
If the deal obtains regulatory approval, Cosco will hold 90.1 per cent of the enlarged group, while its partner in the offer, Shanghai International Port Group, will hold the remainder.
By Courtesy of FT