Cosco Shipping Ports take stake in RSGT
The Board is pleased to announce that on 27 January 2021, the Sellers, Sound Joyce (a whollyowned subsidiary of the Company) and Red Sea Ports entered into the Share Purchase Agreement pursuant to which, the Sellers have conditionally agreed to sell, and Sound Joyce has conditionally agreed to purchase, the Sale Shares (which represent approximately 20.00% of the total issued share capital of RSGT as at the date of this announcement) at a total consideration of US$140,000,000. Upon Completion,
(i) and, if applicable, the completion of the Proposed PIF Acquisition, RSGT will be owned as to approximately 60.00% by Red Sea Ports, 20.00% by Sound Joyce and 20.00% by PIF, respectively. In order to regulate the management and operation of RSGT, Red Sea Ports, Sound Joyce, PIF and RSGT propose to enter into the Shareholders Agreement;
(ii) and, if applicable, the completion of the Proposed PIF Acquisition, SISCO, City Island, Xenel, Tusdeer, Xenel Maintenance (if it remains as a shareholder of Red Sea Ports upon Completion), Red Sea Ports, Sound Joyce and PIF propose to enter into the Red Sea Ports Agreement on certain ancillary rights and obligations in relation to Red Sea Ports and RSGT;
(iii) the Company and RSGT will enter into the Marketing Agreement in relation to the provision of marketing services by the Company to RSGT, including but not limited to procurement of directing transshipment volume and gateway volume in relevant regions.
RSGT is a company incorporated under the laws of Saudi Arabia. It is a privately-owned, independent international terminal operator representing a partnership between SISCO and MMC Corporation Berhad. RSGT is committed to Red Sea regional and global infrastructure and facility investment to better serve the growing requirements of domestic cargo and container services, as well as assuming a larger role in the global logistics chain through targeted international expansion. The major asset of RSGT is Red Sea Gateway Terminal, which is a container terminal at the Jeddah Islamic Port in Jeddah, Saudi Arabia managed and operated by RSGT. Red Sea Gateway Terminal took over the operations in the northern section of the Jeddah Islamic Port (previously known as North Container Terminal) in April 2020, under the newly signed 30-year Concession Agreement. Red Sea Gateway Terminal currently has an annual container throughput capacity of 5.2 million TEU.Full Report
Source: Cosco Shipping Ports