Qingdao Port International to Acquire Oil Terminal Assets for $1.3 Billion

(Reuters) — Qingdao Port International said on Friday it agreed to purchase assets from Rizhao Port and Yantai Port for 9.44 billion yuan ($1.30 billion) as part of its restructuring efforts.

Additionally, Qingdao Port said it is seeking to raise an additional 2 billion yuan through the issuance of new class A shares.

Hong Kong-listed Qingdao Port is purchasing the entire stake in Rizhao Port Oil Terminal, a 50% stake in Rizhao Shihua Crude Oil Terminal Co, a 53.9% stake in Shandong United Energy Pipeline Transportation and a 51% stake in Shandong Gangyuan Pipeline Logistics, on a conditional basis.

The company will pay 4.81 billion yuan by issuing around 697.3 million class A shares, and 4.63 billion yuan will be paid in cash, Qingdao Port said.

These steps are subject to shareholder approval as per the Hong Kong listing rules.

($1 = 7.2518 Chinese yuan renminbi)

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