Freshfields Bruckhaus Deringer (‘Freshfields’) has advised Crest Apex Limited, an indirect subsidiary of CK Hutchison Holdings Limited (‘CK Hutchison’), on the contingent acquisition of up to a 4.99 per cent stake in leading shipping company Orient Overseas (International) Limited (‘OOIL’) from Cosco Shipping Holdings (‘COSCO SHIPPING’) for a purchase price of up to approximately HK$2.46bn (US$315m).

The 4.99 per cent stake forms part of the total of 15.1 per cent of the total issued share capital of OOIL that COSCO SHIPPING has agreed to sell. The remaining 10.11 per cent will be sold to two other purchasers. However, the deal will only close if, at the end of the offer for OOIL by COSCO SHIPPING and Shanghai International Post (Group), the public float of OOIL falls below 25 per cent of the total issued share capital, and to the extent that the disposal of such number of OOIL Shares would restore the public float.

The sale demonstrates the parties’ long-term commitment to deepening their commercial ties, which is also consistent with China’s “Belt and Road” initiative as CK Hutchison operates a number of ports within the “Belt and Road” zone.

The Freshfields team advising on the deal was led by partner and co-head of global M&A Robert Ashworth.