Sinotrans Chemical, Zhanjiang Port Group, and Sinotrans South China to construct the China Merchants Zhanjiang Chemicals Logistics Hub Project, according to Sinotrans's release. The transaction aims to establish a key logistics hub in the Guangdong-Hong Kong-Macao Greater Bay Area.
The companies will form a joint venture with a registered capital of RMB207.2 million, with Sinotrans Chemical holding 50% and Zhanjiang Port Group and Sinotrans South China holding 25% each.
The joint venture will acquire land-use rights from Zhanjiang Port Group for RMB43.97 million to facilitate the project.
The joint venture will focus on freight forwarding, warehousing, and multimodal transportation of chemicals.
This transaction is considered a connected transaction due to the involvement of Zhanjiang Port Group, a subsidiary of China Merchants, the ultimate controlling shareholder of Sinotrans.
The transaction is exempt from independent shareholder approval under Hong Kong Listing Rules.