Chinese terminal operator and logistics firm COSCO Pacific announced Thursday that it will pay $520 million for a 13.7 percent stake in the Yantian Terminal in the southern Chinese city of Shenzhen.
Hong Kong-based COSCO is purchasing the stake through an investment in Danish-firm Sigma Enterprises from A.P. Moller-Maersk subsidiary MAPM Terminals Invest Co Ltd. The purchase will increase COSCO's holding in Sigma from 6.85 percent to 20.55 percent.
COSCO said in a statement that it would finance the purchase internally, but may turn to "capital market transactions when it is appropriate.” Cosco also said that it has cash and reserves on hand of $700 million.
The Yantain Terminals, which move close to 9 million TEUs a year, are a major component of the transpacific trade routes.