HK Stock Market Move | COSCO Shipping Energy Transportation (01138) is up more than 9% and plans to acquire all shares of Shanghai Liquified Gas for 598 million yuan to further integrate LPG transportation business assets.

COSCO Shipping Energy Transportation (01138) rose more than 9%, as of press time, up 9.24% at HKD 10.88, with a turnover of 263 million Hong Kong dollars. On the news front, on October 28, COSCO Shipping Energy Transportation announced that the company plans to conduct a proposed acquisition. According to the Shanghai LPG equity transfer agreement, China COSCO Shipping Dalian Investment has agreed to sell all the shares of Shanghai LPG, and Dalian Haineng (a wholly-owned subsidiary of the company) has agreed to acquire them, subject to the terms and conditions of the agreement. Dalian Haineng will have the right to assume or enjoy the profit and loss during the transition period in accordance with the Shanghai LPG equity transfer agreement. The total cost of all the shares of Shanghai LPG is RMB 598 million, and Dalian Haineng is required to pay the total purchase price to China COSCO Shipping Dalian Investment within five working days from the effective date of the Shanghai LPG equity transfer agreement through bank transfer. The announcement stated that after the completion of the proposed acquisition, the already operational LPG transportation assets within the group will be further integrated into the listed company system, which will be beneficial for the future development of major projects within the company and create favorable conditions in the capital market. Furthermore, it is expected to increase the net profit attributable to the company's shareholders in the long term, improve the overall operational performance of the company, and have a positive impact on enhancing the company's sustainable operating capacity.