China COSCO buys rest of logistics unit for $293 mln

HONG KONG, Aug 28 (Reuters) - China COSCO Holdings (1919.HK), (601919.SS), the country's largest shipping group, said it will buy the remaining 49 percent stake in unit COSCO Logistics, for $293 million, making it into a wholly owned subsidiary.

COSCO, which already owns 51 percent of COSCO Logistics, will pay 2 billion yuan ($293 million) for the acquisition of the remaining shares, which are currently held by another indirect unit, CP Logistics Co Ltd.

In a separate statement, the seller CP Logistics said it expects to realise an estimated pretax gain of $102.5 million from the transaction.

"The investment in the 49 percent equity interest in COSCO Logistics is no longer a strategic business unit of the group," said CP Logistics parent COSCO Pacific Ltd (1199.HK).

"The transaction allows the group to concentrate its resources on the development of its terminal business." (Full statement: (Full statement www.hkexnews.hk/listedco/ listconews/sehk/20090827/LTN20090827572.pdf)

China COSCO also announced a separate deal, in which it would sell its 100 percent equity interest in Shanghai Ocen Shipping Co Ltd to another wholly-owned unit COSCON, for 278.67 million yuan. The transfer of Shanghai Ocean Shipping, a seamen and shipping management service provider, is expected to improve the overall competitiveness of COSCON, one of the world's leading container shipping service providers.

For full company statement, click: here

China COSCO , which warned of a first-half net loss in July, reported a smaller-than-expected net loss of 4.59 billion yuan for Jan-June on Thursday as the global recession took a toll on international trade, which badly hit sea transport volumes and rates. [ID:nHKG129823] ($1=6.83 yuan) (Reporting by Nerilyn Tenorio; Editing by xxx)