T.S. Lines Limited entered into the shipbuilding contracts with CSSC Huangpu Wenchong Shipbuilding Company Limited and China Shipbuilding Trading Co., Ltd., each on substantially the same terms, for the construction of four 5,300 TEU container vessels.
According to the company's release, the aggregate consideration is US$245,120,000 (approximately HK$1,911,936,000), with each vessel priced at US$61,280,000 (approximately HK$477,984,000).
The company had previously entered into the 2024 Shipbuilding Contracts with the same sellers on September 20, 2024, for two 4,300 TEU container vessels at an aggregate consideration of US$121,200,000 (approximately HK$945,360,000).
These contracts are expected to be amended to increase vessel capacity to 5,300 TEU each, raising the price per vessel to US$62,780,000 (approximately HK$489,864,000).
The amended contracts are expected to be signed in late August 2025 but may or may not materialise.
Under the 2025 Shipbuilding Contracts, the vessels are expected to be delivered between June 2028 and December 2028.
The amended 2024 contracts provide for delivery in February and April 2028.
Payment for each vessel under the 2025 contracts will be made in six instalments, with the sellers’ bank providing an irrevocable refund guarantee.
The transactions have been aggregated under Rule 14.22 of the Listing Rules, as they involve the same sellers within a 12-month period.
When aggregated, the percentage ratios under Rule 14.07 exceed 5% but are less than 25%, making them discloseable transactions subject to reporting and announcement requirements under Chapter 14 of the Listing Rules.
The company expects to fund the consideration through internal resources and external financing.
T.S. Lines Limited is a company incorporated in Hong Kong.
CSSC Huangpu Wenchong Shipbuilding Company Limited is a company incorporated in the People’s Republic of China, operating as an indirect non-wholly owned subsidiary of China State Shipbuilding Corporation Limited.