China Merchants, COSCO and IMC Put Up for Tender Their 70% Stake in Qingdao Ore Terminal

China Merchants Port, COSCO Shipping Ports and IMC launched a joint public tender to sell their combined 70% stake in Qingdao Port Dongjiakou Ore Terminal, the company in charge of the construction, operation and management of the iron ore terminal at Dongjiakou, within the port of Qingdao, China. The deal is being carried out through the China Beijing Equity Exchange, and the tender will remain open until November 11, 2026.

Sources differ slightly on the minimum price figures: Splash 247 puts it at 1.92 billion yuan, equivalent to 287 million dollars, while Port Technology specifies an amount of 1,917,691,160 yuan, around 286.8 million dollars. Portal Portuario, on the other hand, points to a total minimum consideration of 270 million dollars for the 70% stake, of which 96 million corresponds to China Merchants Port's 25% stake. According to Splash 247 and Port Technology, both China Merchants Port and COSCO Shipping Ports would each contribute around 102 million dollars for their respective 25% stakes.

Prior to the sale, China Merchants Port and COSCO Shipping Ports each hold 25% of the terminal through their subsidiaries Mighty Star Investment Limited and COSCO Shipping Ports Investments (Shanghai), respectively, while Singapore-based IMC controls 20% through IMC Qingdao Port Investment. The remaining 30% is held by Qingdao Port International, which is not taking part in the sale and will retain its stake following the transaction.

Dongjiakou is one of Qingdao's main bulk cargo areas and was developed to receive some of the world's largest ore carriers. Its iron ore terminal, capable of handling vessels of up to 400,000 deadweight tonnes, entered service in 2013 and allows the port to receive VLOCs used in the Brazil-China trade.

China Merchants Port stated that the proposed sale would allow it to realize the value of its investment and improve its financial flexibility, while COSCO Shipping Ports described the deal as part of its broader strategy to optimize resource allocation and support the future development of its business. If completed, all three selling shareholders would fully exit the company that owns the terminal, which would then be held by the winning bidder together with Qingdao Port International.

Port Technology noted that, as of the announcement date, there was no confirmed buyer nor a definitive agreement signed, so COSCO Shipping Ports warned that the deal might not go through and urged caution among its shareholders and investors. The sale must comply with Chinese laws on the transfer of state-owned assets, and based on the minimum price attributable to the Shanghai subsidiary's stake, the transaction ratios under Hong Kong listing rules would fall below 5%, meaning it would not constitute a notifiable transaction.