COSCO selling logistics arm to reverse losses
China COSCO Holdings Co Ltd, the world's largest bulk shipper, will sell its logistics arm to reverse losses.
The Shanghai-listed company said in an announcement filed to the Shanghai Stock Exchange that the board of directors has approved the sale of its wholly-owned China COSCO Logistics Co Ltd to the parent COSCO Group, or China Ocean Shipping (Group) Co (COSCO).
The decision was made after China COSCO Holdings reported losses for the second straight year in 2012. The company is facing being delisted if it fails to turn the losses around in 2013.
In 2011, China COSCO Holdings recorded a loss of 10.45 billion yuan ($1.66 billion), and in an earnings forecast on January 26 it expected to report a giant loss for the 2012 financial year, too.
"The sale will generate investment proceeds and help lower de-listing risks," an unnamed source from the company told Shanghai Securities News.
