Ningbo Zhoushan port delays non-competition pledge

Ningbo Zhoushan Port Co., Ltd. (SSE:601018) announced that its indirect controlling shareholder, Zhejiang Seaport Investment & Operation Group, is seeking an extension to a non-competition agreement. The extension relates to a 30% stake in Shanghai International Port Group Pinghu Dushan Port Co., Ltd. The original commitment, designed to prevent conflicts of interest, was partially addressed by entrusting the port to Ningbo Zhoushan for management in 2017. Zhejiang Seaport Investment & Operation Group now proposes extending the original pledge by five years, until March 10, 2030, citing concerns that injecting the port into Ningbo Zhoushan at this time would not maximize shareholder value. The company’s board and supervisory committee have approved the proposal, which will now go to a shareholder vote.