Seacon Shipping (02409.HK) announced that its indirectly wholly-owned subsidiary, Seacon Shipping Pte. Ltd, entered into an agreement with the joint venture company, Continental Kapital MPP Holdings Limited, yesterday (23rd). It is understood that Continental Kapital MPP Holdings Limited has agreed to acquire all the shares of several target companies from Seacon Shipping Pte. Ltd for a price of approximately 11.3 million US dollars.

The aforementioned target companies include SEACON WUHU LTD., SEACON SUZHOU LTD., SEACON HEFEI LTD., SEACON GUANGZHOU LTD., SEACON NINGDE LTD., and SEACON SHENZHEN LTD., all of which are limited companies registered in Liberia and indirect wholly-owned subsidiaries of Seacon Shipping.

Furthermore, prior to the sale, Seacon Shipping provided guarantees to the respective owners for four bareboat charters and two finance lease arrangements made with the target companies.

Seacon Shipping explained that as the bareboat charters and finance lease arrangements will continue after the sale, and the target companies will no longer be subsidiaries of Seacon Shipping after the completion of the sale, the guarantees provided will constitute financial assistance from Seacon Shipping to the target companies. The total maximum amount under these guarantees is approximately 0.237 billion US dollars, along with other related expenses, debts, and costs. In addition to the guarantees, Seacon Shipping also provided approximately 5.6 million US dollars of shareholder loans to the target companies.

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