Hong Kong-listed Titan Petrochemicals Group said Monday it has signed an agreement to sell a 95% stake in Titan Quanzhou Shipyard to Grand China Logistics for Yuan 1.866 billion ($280 million).
In addition, Titan will issue 500 million new shares at a price of HK$0.61 ($0.08) to Grand China Logistics, Titan said in a statement to the Hong Kong Stock Exchange.
The deal is subject to shareholder approval.
Grand China Logistics, which is a unit of Hainan Air Group, is in the business of integrated logistics, container shipping, bulk cargo and oil tanker shipping, and logistics properties development.
Titan will use the proceeds to reduce its debt and capital for further development of its existing core business, it said. The company is in the oil storage and ship building business in the Asia Pacific region.
Titan reported a loss of HK$735 million ($94.5 million) for the six months ended June 30, as an “oversupply of tonnage and slow demand for oil tankers resulted in the weak performance of (the company’s) transportation and ship building business.”
The company said then that its onshore storage business had performed well and remained profitable, while the rest of its business segments continued to operate under difficult market conditions.
In addition, Titan will issue 500 million new shares at a price of HK$0.61 ($0.08) to Grand China Logistics, Titan said in a statement to the Hong Kong Stock Exchange.
The deal is subject to shareholder approval.
Grand China Logistics, which is a unit of Hainan Air Group, is in the business of integrated logistics, container shipping, bulk cargo and oil tanker shipping, and logistics properties development.
Titan will use the proceeds to reduce its debt and capital for further development of its existing core business, it said. The company is in the oil storage and ship building business in the Asia Pacific region.
Titan reported a loss of HK$735 million ($94.5 million) for the six months ended June 30, as an “oversupply of tonnage and slow demand for oil tankers resulted in the weak performance of (the company’s) transportation and ship building business.”
The company said then that its onshore storage business had performed well and remained profitable, while the rest of its business segments continued to operate under difficult market conditions.