- China Merchants Energy Shipping (CMES) will acquire up to a 13.8% stake in Antong Holdings following a cancelled asset deal.
- The RMB1.8 billion ($250 million) investment will be made through Sinotrans Container Lines via various share purchase methods.
- CMES’s strategic shift signals renewed interest in domestic container shipping, with further investments planned.
China Merchants Energy Shipping (CMES) is on track to become the largest shareholder in domestic container shipping firm Antong Holdings. This follows a strategic decision to acquire up to 13.8% of the company, marking a significant shift in CMES’s investment direction after a previously planned asset transaction between the two state-backed entities collapsed.
Investment Details and Execution Plan
Through its subsidiary Sinotrans Container Lines, CMES will invest as much as RMB1.8 billion (approximately $250 million) to purchase 333.7 million shares in Antong Holdings. This acquisition—equivalent to 7.89% of Antong’s total shares—will be carried out using a mix of block trades, centralised bidding, and negotiated transfers. When combined with shares held by affiliated entities such as China Merchants Port and various Sinotrans-linked companies, CMES’s total stake will reach 13.8%.
Shift in Strategy After Cancelled Asset Deal
This new investment direction follows the termination of a proposed June 2023 deal that would have seen Antong acquire CMES’s container and car carrier subsidiaries. That deal was called off due to disagreements over valuation terms and evolving market dynamics. In its place, CMES is now focusing on direct equity participation to deepen its presence in the domestic shipping sector.
Future Stake Increases and Strategic Outlook
Sinotrans has also indicated plans to further raise its stake in Antong within the next year, potentially adding up to RMB720 million in additional investment. This ongoing capital infusion underlines CMES’s long-term commitment to expanding its influence in China’s container shipping market through a more integrated shareholding approach.
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Source: Splash247
