Cosco to sell CIMC stake

Cosco Pacific Ltd, the Hong Kong-listed port operator of Chinese State-owned shipping conglomerate COSCO group, said on Monday that it would sell its entire 21.8 percent stake in China International Marine Containers (Group) Co to its parent group for $1.22 billion in cash.

The sale was to boost cash flow for the company to allow it to focus on container leasing operations, as well as new acquisitions in its terminals business, Cosco Pacific said in an emailed statement.

The sale also comes after Cosco Holdings Ltd, which owns 42.7 percent of Cosco Pacific, reported financial losses for two consecutive years. Industry analysts said this deal might be able to help improve Cosco Holdings' profitability.