Hong Kong-listed Sinotrans Ltd, a unit of the state-run China National Foreign Trade Transportation (Group) Corp (Sinotrans Corp), said it plans to spin off its cargo shipping subsidiary, confirming earlier media reports. Earlier, the Standard reported that the company plans to raise up to 10 bln hkd from the spinoff of the subsidiary, with an initial public offering planned next month in Hong Kong. Zhang Jianwei, president of Sinotrans Ltd and executive director of Sinotrans Corp, confirmed the report at an industry conference. He said that Sinotrans Corp started the process of listing its logistics assets in 2006. Sinotrans Corp will consolidate its indirectly-controlled units and joint ventures in the next three years, and then inject these assets into Sinotrans Ltd gradually, Zhang said. After the consolidation, Sinotrans Corp will have two major listed units focused on general logistics and bulk cargo shipping, he added.
He projected China's logistics market at 500 bln usd in 2010, with Sinotrans Corp expected to have operating income of over 10 bln usd by then.
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