Shandong Port Integration Dust Settled

After nearly two years of port integration in Shandong Province, the dust has finally settled. On July 28, the Shandong Port Group's integration work was launched and the leading group meeting was announced. The list of members of the Shandong Port Group's team and the way of its formation were put forward.

Huo Gao, director and chairman of Shandong Land Reserve Development Group Co., Ltd., will be chairman and Secretary of Shandong Port Group, general manager and Deputy Secretary of the Party Committee of Qingdao Port Group, Li Fengli, chairman, Deputy Secretary of the Party Committee of Qingdao Port Group, Liu China and Qiu Hongjing, Deputy Secretary of the Party Committee of Weihai Discipline Committee. Jiao Guangjun, President of Qingdao Port Group, Cai Zhongtang, Chairman of Rizhao Port Group, Sun Zhengfu, General Manager of Bohai Bay Port Group, Ma Deliang, Director of Water Transport Department of Shandong Transportation Department, Sun Fuchun, Chairman of Yantai Port Group, were appointed Vice-General Managers.

Among the nine leading groups, Huo plateau, the "first leader", was "airborne". The chairman and President of Qingdao Port Group served as the main and Deputy posts respectively. One person from Yantai Port, Rizhao Port and Bohai Bay Port Group was also elected as the deputy posts. Among them, Cai Zhongtang, Jiao Guangjun and Ma Deliang have harbor and shipping experience. Sun Zhengfu has been working in state-owned enterprises, and the rest are government officials. < p > < p > The ports in Shandong Province include foreign capital, private capital and investment by state-owned enterprises. The relationship between them is complex. Because Qingdao Port and Rizhao Port belong to the same listed enterprises, the integration still needs approval from the Securities Regulatory Commission. This may be one of the major reasons for the delay of port integration in Shandong Province. At this conference, the question of how to integrate the ports was finally decided.

Firstly, Shandong Port Group is formed by Shandong High Speed Group, Qilu Transportation Development Group, Yanzhou Mining Group and Shandong Energy Group, which fulfill the obligations of provincial investors and pledge 50% (totaling 5 billion yuan) of capital contribution. After the listing of Shandong Port Group, the remaining 50% will be in place in 2019.

Subsequently, Qingdao Port, Yantai Port and Rizhao Port Group will invest in the provincial port group according to book value, while Bohai Bay Port Group will invest in the provincial port group at the sum of book value and the assets evaluation of the integrated port enterprise approved by the Provincial State Asset Management Commission. The port circle has learned that the net assets of Qingdao Port are nearly 30 billion, Rizhao Port is about 13 billion, Yantai Port is about 8 billion, and Bohai Bay Port is about 6.9 billion, which means that Qingdao Port will occupy an absolute advantage after equity transfer. It is understood that because both Qingdao Port and Zhaogang are listed companies, the integration also needs to pass the relevant approval procedures such as the transaction review of listed companies of the Securities Regulatory Commission and the exemption of tender offer acquisition. At the same time, it also needs to pass the anti-monopoly examination of operators (concentration).

This way of formation is very similar to that of Zhejiang Harbour and Ningbo Zhoushan Harbour Group. First, it is funded by provincial investors. Finally, this part of equity will be transferred to SASASAC. The actual operation and management will ultimately be invested by the four major port groups, and the port group after the adjustment of rights and interests will bear it.