Liner giant Orient Overseas (International) Limited (OOIL) is likely to have over $1bn to fund fleet growth as it moves closer to the long-awaited sale of its Long Beach Container Terminal.
Hong Kong-listed OOIL struck as $1.78bn deal with a Macquarie Infrastructure Partners fronted consortium for the facility in April, in a sale linked to the company’s takeover by China’s Cosco Shipping Holdings Co.
In an update today, OOIL said it expected to book a gain of $1.29bn on the transaction, which has yet to close.
It told investors it had not yet made any decision as to the use of proceeds and would undertake a review.
However, it added cash could be deployed for general working capital and to “fund new growth opportunities within its core business of container transport logistics services”.
Container market players have been closely watching Cosco for indications on growth after it took control of OOIL.
Cosco will have a fortified war chest at a time market leader Maersk Line has sworn off newbuilding orders and major takeovers while it digests the purchase of Hamburg Sud and looks to undertake a major strategic shift while retaining investment grade.
