Cosco Shipping Energy to acquire Shanghai Liquefied Gas for $598m

Cosco Shipping Energy Transportation Co. announced a proposed acquisition of the entire equity interest in Shanghai Liquefied Gas for RMB598.2895 million. The consideration will be paid in cash by Dalian COSCO Energy, a wholly-owned subsidiary of the company, to COSCO SHIPPING Investment Dalian, a connected person. Approximately 60% of the consideration will be financed by external financing, with the remaining 40% from internal financial resources.

The acquisition is considered a connected transaction, subject to reporting and announcement requirements under Hong Kong Listing Rules, but exempt from independent shareholders' approval as applicable percentage ratios are expected to be between 0.1% and 5%. The valuation, conducted by Shanghai Orient, used an asset-based approach, valuing Shanghai Liquefied Gas’s equity at RMB598,289,468.27 as of June 30, 2025.

This transaction aims to consolidate the group's LPG transportation assets, enhance financial profitability, and achieve unified management of the group's LPG business, forming economies of scale and improving market competitiveness. Shanghai Liquefied Gas is a holding company primarily holding one very large LPG carrier (VLGC), the "Changxingyuan" vessel.