Sale Of Shares In Costar Shipping Pte Ltd ("Costar") And Coslink (M) Sdn Bhd ("Coslink")

The board of Directors of COSCO Corporation (Singapore) Limited (the “Company”) wishes to announce that the Company has today entered into separate conditional sale and purchase agreements (the “Agreements”) with Freightworld Pte Ltd (“Freightworld”) to sell (i) 700,001 shares in Costar representing approximately 70% of the issued share capital of Costar (the “Costar Sale Shares”); and (ii) 1,400,000 shares in Coslink representing approximately 70% of the issued share capital of Coslink (the “Coslink Sale Shares”) to Freightworld (the “Disposals”). The consideration for the Costar Sale Shares is S$10,600,000 and the consideration for the Coslink Sale Shares is S$1,050,000. The consideration shall be payable by Freightworld on completion in cash. The consideration was arrived at after arm’s length negotiations between the Company and Freightworld and was principally based on the financial position and business prospects of Costar and Coslink as well as the net asset values of the Costar Sale Shares and the Coslink Sale Shares.

The aggregate net asset value of the Costar Sale Shares and the Coslink Sale Shares as at 30 June 2010 was approximately S$3,506,537. The Company and Freightworld have commissioned an independent valuation on the Costar Sale Shares and Coslink Sale Shares. Based on the valuation as at 25 June 2010, the value of the Costar Sale Shares was between S$9,800,000 and S$11,400,000 and the value of the Coslink Sale Shares was between S$1,000,000 and S$1,100,000.

Freightworld is an indirect wholly-owned subsidiary of China COSCO Holdings Company Limited (“China COSCO”) through COSCO Container Lines Company Limited. The Company is a subsidiary of China Ocean Shipping (Group) Company (“China Ocean Shipping”), which in turn is the controlling shareholder of China COSCO. Accordingly, the transactions contemplated under the Agreements constitute interested person transactions of the Company. Based on the Group’s latest audited accounts as at 31 December 2009, the Group’s latest audited net tangible assets were S$1,074,517,000. The aggregate value of the transactions under the Agreements, excluding the interested person transactions under the general mandate obtained by the Company with China COSCO and its associates, is approximately 1.08%. Accordingly, neither Rule 905 nor Rule 906 of the Listing Manual is applicable.

Mr Liu Guo Yuan, Mr Jiang Li Jun, Mr Ma Gui Chuan, Mr Wang Hai Min, Mr Wang Xing Ru, Mr Ma Zhi Hong, Mr Lu Cheng Gang, Mr Ye Bin Lin, Mr Liu De Tian and Mr Li Jian Xiong are members of the managing body of or Directors nominated by China Ocean Shipping. Save as disclosed above, none of the other Directors or controlling shareholders of the Company has any interest, direct or indirect, in the Agreements.

The Audit Committee is of the view that the Disposals are on normal commercial terms and are not prejudicial to the interests of the Company and its minority shareholders.

The Disposals are not expected to have any material impact on the net tangible assets (NTA) and earnings per share (EPS) of the Company and the Group for the year ending 31 December 2010.

By Order of Board
Jiang Li Jun
Vice Chairman/President
4 November 2010

Cosco Corporation (Singapore) Limited, press release