Yingkou Port, one of the country's top 10 coastal ports, is
planning a total listing after three to five placements, the
company's president said yesterday.
"We will embark on the third placement in April," Gao Baoyu,
president of Yingkou Port Group, told China Daily on the sidelines
of the annual session of the National People's Congress. But he
refused to elaborate as the plan is still waiting for the green
light from the China Securities Regulatory Commission.
"If things go according to plan, we'll launch the fourth
placement this year," Gao said.
The company, listed in Shenzhen in 2002, saw a throughput of
94.8 million tons last year and "will surely exceed 100 million
tons this year".
However, to avoid competition between the listed arm and the
rest of the group, making the parent company list in its entirety
or regularly injecting quality assets into its subsidiaries is seen
by Gao as necessary in the long run.
But such restructuring, although a trend in the ports sector,
can hardly be achieved within a short time.
"It's very hard to inject all the parent company's good assets
into the listed subsidiary, given the scale gap," Gao said, adding
that it is a common challenge for many ports.
The total assets of the listed arm of Yingkou Port hovers around
2 billion yuan. Those of the group stand at 14 to 15 billion
yuan.
"Therefore, we have to achieve the restructuring through several
placements and then list the group in its entirety," Gao said,
adding the whole process could take five years, or even longer.
According to Zheng Qingping, an analyst with Golden Sun
Securities, Tianjin Port, Rizhao Port, Yantian Port and Chongqing
Gangjiu Corp are all likely to benefit from similar reshuffles.
For the moment, only Shanghai Port Group is listed in its
entirety in Shanghai.
Yingkou is also strengthening itself through mergers and
acquisitions.
"We took over 80 percent of Panjin Port in late February," said
Gao, "and are still in discussions with other ports along Liaoning
coast on similar cooperation."
Though Gao declined to reveal Yingkou's next partner, he said he
prefers joining forces with private ports and would like to take a
major stake in such a joint venture.
Besides mulling over the listing plan, Yingkou Port is also
seeking cooperation opportunities with overseas investors.
"We are not ruling out the possibility of having a stake in
ventures with the world's leading logistics companies," Gao
said.
(China Daily March 16, 2007)