Sino-Global to acquire majority stake in Mandarine Ocean
Sino-Global Shipping America, Ltd., a non-asset based global shipping and freight logistic integrated solution provider, has announced the signing of a Share Purchase Agreement with Mr. Kelin Wu, the 88.5% shareholder of Mandarine Ocean Ltd, a Shanghai, China-based shipping company registered in the Marshall Islands, the company said in its release.
Under the Agreement, Sino-Global will acquire a 75% majority position in Mandarine Ocean for up to $3.75 million, with a combination of cash and stock dependent on MO's financial performance, particularly its pre-tax net profit (annual pre-tax net profit over the next two-years). Over the past three years, MO has an average annual revenue of approximately US$38 million. With the integration of MO's business, there will be a significant increase in SINO's revenue beginning in the current fiscal 2020 fourth quarter and into fiscal 2021. The details of the transaction in detail will be available in the Company's filing with the Security and Exchange Commission on Form 8-K.
Mandarine Ocean was founded in 2013 and is a shipping company providing worldwide ocean freight service. Mandarine Ocean currently has long-term contracts to operate 14 bulk carriers (with six of those vessels being owned by Mr. Wu), with the majority being Handysize and Handymax size with DWT range from 20,000mt to 50,000mt.
MO's current downstream business operates in the middle portion of the ocean logistic supply chain, which includes shipping agency services, ship management and crew management. These services are all outsourced to other suppliers, each of these are within Sino-Global's business scope. With the completion of acquisition, MO can utilize its relationship with (and ownership by) Sino-Global to consolidate these services at a lower overall cost and provides enhanced profit potential. Ultimately, the Company believes it will increase incremental shipping agency revenues by approximately $7 million based on historical volumes.
About Sino-Global Shipping America, Ltd.
Founded in the United States in 2001, Sino-Global Shipping America, Ltd. is a company engaged in shipping, chartering, logistics and related services. Headquartered in New York, Sino-Global has offices in Los Angeles, Mainland China, Australia, Canada and Hong Kong. The Company's current service offerings consist of shipping agency services, shipping and chartering services, inland transportation management services and ship management services.