COSCO Shipping Energy to acquire Shanghai LPG Shipping for 598.29m yuan

COSCO Shipping Energy Transportation will acquire 100% equity in Shanghai COSCO Shipping LPG Shipping Co., Ltd. from Dalian COSCO Shipping Investment Co., Ltd. for approximately 598.29 million yuan. This all-cash transaction, to be finalized within five business days of the agreement's effective date, aims to streamline COSCO Shipping Energy's LPG business, reduce related-party transactions, and enhance market competitiveness. The acquisition, approved by the board on October 28, 2025, aligns with the company's strategy to integrate energy and chemical logistics.

The valuation of Shanghai LPG Shipping's equity, as of June 30, 2025, was 59,828.95 million yuan, representing a 14.66% increase over its net asset book value of 52,179.92 million yuan. This increase is primarily attributed to the accounting depreciation period of the target company's vessels being shorter than their economic life. Dalian Energy will fund the acquisition with 40% internal capital and 60% external financing.

This acquisition falls under COSCO Shipping Energy’s strategic integration of energy and chemical product logistics supply chains, addressing existing related-party transactions and potential horizontal competition with its controlling shareholder, China COSCO Shipping Group. The deal is not considered a major asset reorganization and will not require shareholder approval, according to regulatory guidelines.