China Shipping Development Co, the Chinese mainland's biggest oil carrier, plans to buy 42 dry-bulk cargo ships from its parent company to expand shipments of coal, cement, iron ore and other materials.

The company will pay 2.47 billion Yuan (US$314 million) for the ships and issue two billion Yuan in convertible A-share bonds to help fund the deal, Shanghai-based China Shipping said in a statement. The acquisition covers all of the parent company's dry-bulk business, Chairman Li Shaode said.

China Shipping, which moves oil, coal and other dry-bulk cargo, is expanding its fleet as growth in the mainland's economy fuels demand for raw materials. The deal should boost China Shipping's earnings. They have some long-term clients, and given the high economic growth, demand for dry-bulk will be OK.

China Shipping said it will acquire the vessels from its parent, China Shipping (Group) Co. The ships include 32 China-registered and 10 foreign-registered dry-bulk carriers, representing about 1.4 million dead-weight tons in capacity.

Source:佚名