CMPort introduces strategic partners to promote the sustainable development of Hambantota Port

Commercial & Marketing

On 29 June 2020,China Merchants Port Holdings Co., Ltd. (“CMPort” or “the Company”, HKSE Code: 00144), Fujian Transportation Maritime Silk Road Investment and Management Co. Limited (“Fujian TMSR”) and Fujian Provincial Communication Transportation Group Co., Ltd. (“FJCT”) held a Share Transfer Deed online signing ceremony.

Mr. Deng Renjie, Executive Vice President of China Merchants Group Company Limited (“CMG”) and Chairman of CMPort, Mr. Li Zhonghan, General Manager of Overseas Business/International Cooperation Department of CMG, Mr. Zhan Chenhui,Deputy Director of Fujian Provincial Development and Reform Commission, Ms. Huang Naen, Deputy Director of Department of Commerce of Fujian Province, Wang Qiang, Inspector of Fujian SASAC, Mr. Guo Guohua, Vice president of Fujian Enterprises and Entrepreneurs Confederation, Mr. Chen Kexiang, General Manager of FJCT, Mr. Zheng Shaoping, Deputy General Manager and Executive Director of CMPort and other distinguish guests witnessed the ceremony. Dr. Bai Jingtao, Managing Director of CMPort, Mr. Xiong Xianliang, General Manager of Strategy and Development Department of CMG, Mr. Li Xinghu, Chairman of FJCT, Mr. Wang Dunxing, Director of Fujian TMSR represents their parties to sign the Deed. Mr. Lu Yongxin, Deputy General Manager of CMPort hosted the ceremony.

According to the Share Transfer Deed, Fujian TMSR has agreed to acquire 23.5% shareholding interests of a wholly-owned subsidiary of the Company(“Target Company”) at a total consideration of US$268 million (equivalent to approximately HK$2.077billion),  with FJCT as guarantor. The Target Company holds 85% interest of Hambantota International Port Group (Private) Limited (“HIPG”) in Sri Lanka.

Since CMPort started to operate Hambantota Port from year 2017, the Company has successively introduced oil and gas business, cement loading and unloading and maritime service to the port. As a strategic partner, FJCT’s principal businesses covered construction and operation of ports and port-centered logistics parks, operation of modern logistics and supply chain, water/land freight transportation and tourism passenger transportation. FJCT is a leading enterprise of port and shipping industry with large contiguous container terminals, dry bulk cargo terminals, chemical product terminals and inland river terminals. CMPort strive to maintain the management control of HIPG while lower our share ratio by introducing strategic investors to optimise the Company’s assets and corporate governance structure. Through the injection of domestic and overseas resources of the parties, the partnership will not only conducive to the long-term sustainable development of the Port, but also conducive to the sustainable appreciation of the Port as an asset.

Deng Renjie said, “CMG and FJCT has a long history of collaboration, this cooperation is not only a role model for both sides to integrate resources, complement each other’s advantages and invest overseas as a group, but also the injection of new impetus to speed up the construction of Hambantota as South Asia shipping center. I hope both sides will give full play to their respective advantages, seize the opportunity of digital transformation of port and shipping industry and domestic industrial transfer to explore the cooperation of port business at home and abroad, fasten the injection of advantageous industries in the industrial park of Hambantota port, further expand the breadth and depth of the cooperation, together we push forward the promotion of ‘Belt and Road’ to a higher quality direction”  

Li Xinghu said , “FJCT will take this cooperation as an opportunity to deepen the cooperation between Hambantota port and Fujian ports as well as shipping enterprises. We will also expand the business location and enhance the brand influence of “Silk Road shipping”. At the same time, FJCT will also strive to attract and encourage Fujian enterprises to participate in the construction of Hambantota port, and strive to make Hambantota Port a homebase for Fujian enterprises to enter the South Asia and overseas markets. ”

Finally, Wang Qiang send his blessings to both parties to join hands in speed up the construction of Hambantota Port with  sincere and mutual beneficial cooperation, and make Hambantota Port a prototype project of port development and port industrial park along the “Belt and Road”.