CCCS consults on proposed acquisition of Global Sea Containers

CCCS consults on proposed acquisition of Global Sea Containers

China Merchants Energy Shipping (CMES) has revived its bid for control of Antong Holdings by acquiring a 13.8% stake in the Quanzhou-based container shipping company. This move follows the collapse of a restructuring deal between the two companies earlier this year [1].

The acquisition, valued at no more than Yuan1.8bn ($248m), is being carried out by Sinotrans Container Lines, a subsidiary of CMES. The acquisition will see Sinotrans and its concert parties become the largest shareholder of Antong, according to an exchange filing by CMES.

The restructuring deal, which was first proposed in May 2024, involved Antong issuing shares to CMES in exchange for full ownership of Sinolines and a 70% stake in CMES RoRo, its car shipping subsidiary. However, the deal collapsed due to disagreements over key terms and shifting market conditions [1].

Despite the setback, CMES has quickly shifted its strategy. Within two months of the restructuring deal's collapse, it has proposed a new acquisition plan through Sinolines. This plan aims to increase CMES's stake in Antong, potentially making it the controlling shareholder.

The combined fleet of Sinolines and Antong, which operates 41 and 75 vessels respectively, totals over 130,000 teu. Together, they could rank among the world's top 20 container carriers, according to industry estimates [1].

References:
[1] https://www.lloydslist.com/LL1154201/CMES-reboots-Antong-takeover-via-stake-acquisition