PYI sells 15% stake in Yangkou Port

PYI Corporation Limited has entered into an agreement for the disposal of an aggregate of 15 per cent interest in Yangkou Port, for a total consideration of RMB300 million (approximately US$44 million).

PYI owned 75 per cent of Yangkou Port before the disposals, meaning that Yangkou Port will remain a 60 per cent subsidiary of PYI after completion.

The 15 per cent sale will be split between two purchasers - Nantong SOA will take 10 per cent at RMB200 million, while Ritai will take the remaining 5 per cent for RMB100 million.

Tom Lau, Managing Director of PYI, said, “Since 2003, Yangkou Port has overcome various risks in its initial development stage, including scientific research, design, construction, financing, policy and commercial risks."

"It has also successfully completed major infrastructures for port development ... [while a] commitment by PetroChina to develop LNG import facility at Yangkou Port was also secured.”

“The disposal is a good opportunity for PYI to crystallize the value of our investment in Yangkou Port while maintaining our controlling interest in it. Since the disposals are at net carrying value, they have no material effect on profit or loss before tax. We will continue to generate attractive returns from Yangkou Port for the PYI Shareholders.”

(Source: Port Financial International)