Increase Equity Interest in Yantian Terminals

The Board of COSCO Pacific Limited (“COSCO Pacific” or the “Company”) is pleased to announce that the Company and its wholly owned subsidiary, Crestway International Limited (“Crestway” ), entered into a conditional sale and purchase agreement with A.P. Moller-Maersk A/S (“APMM”) and its wholly owned subsidiary, Orion Limited (“Orion”), on 29th April 2010. Crestway has agreed to purchase and to take assignment of, and APMM and Orion have agreed to sell and assign, a 13.70% effective interest in Sigma Enterprises Limited (“Sigma”) and the shareholder loans for a total cash consideration (“Consideration”) of US$520,000,000. The Consideration was determined after arm’s length negotiation between APMM, Orion and Crestway, with reference to various factors including, among others, Company Comparables such as price-to-earning multiples (P/E), enterprise value-to-EBITDA multiples (EV/EBITDA) and price-to-book multiples (P/B).

Upon completion of the acquisition, Crestway will increase its direct and indirect equity interests in Sigma from currently 6.85% to 20.55% (Note 1). The acquisition (Note 2) is expected to be completed (Note 3) on or before 31st July 2010, or such later time and date as may be agreed between the Company, Crestway, APMM and Orion in writing.

The principal asset of Sigma is its wholly-owned subsidiary, Hutchion Ports Yantian Limited (“HPYL”), which holds, among others, 73% equity interest in Yantian Terminal (Phase I and II), 65% equity interest in Yantian Terminal (Phase III), and 65% equity interest in Yantian Terminal (West Port). Situated at the deep water port of Yantian in the eastern side of Shenzhen, the above Yantian Terminals have an aggregate of 15 operating berths in 2010 with quay length of 6,092 meters and total yard area of 315 hectares. Yantian Terminals are serving more than 30 major shipping lines with over 80 weekly services. In 2009, it handled 8.6 million TEUs of containers, accounting for 47% market share in port of Shenzhen. For the first quarter in 2010, its container terminal throughput reached 2.18 million TEUs, representing an impressive year-on-year growth of 18.4%.

Port of Shenzhen is a major hub port which is ranking as the second busiest in China and the fourth busiest in the world. Yantian Terminals in Shenzhen has benefitted from China economic growth since its commencement of operation in 1994. The Terminals have achieved a 17% compound annual growth in container throughput for the past 10 years. Looking forward, COSCO Pacific strongly believes that Yantian Terminals being the major container terminals in South China, will continue to benefit from China economic growth and global economic recovery.

Being the fifth largest container terminal operator in the world, COSCO Pacific’s strategy is to maintain and enhance its position as the global industry leader by further strengthening its container terminal network by means of organic growth and new investments in both China and overseas. COSCO Pacific firmly believes that the acquisition of 13.70% effective interest in Sigma will bring significant benefits to the Company. We are confident that our direct and indirectly increase of equity interest in HPYL, a highly efficient terminal operation in Yantian, will further enhance COSCO Pacific’s overall profitability of port division from 2010 and onwards.

About COSCO Pacific

COSCO Pacific Limited (HKSE: 1199) is a global market leader in container terminal operation and container leasing businesses.

As the world’s fifth largest container terminal operator, COSCO Pacific holds various equity interests in 23 terminal operations which operate and manage a total of 96 berths at 19 ports strategically located in China and overseas. Its terminal portfolio handled 43.5m TEU of containers in 2009. The Company aims to solidify its position as a global port operator by extending its controlling rights in terminals and broadening its overseas reach.

As the world’s second largest container leasing company, COSCO Pacific owns and manages a container fleet of 1.58 million TEUs as at 31 December 2009. It provides comprehensive services to customers. Its services include leasing, management and sale of marine containers. For further information about COSCO Pacific, please retrieve the Company’s website www.coscopac.com.hk.

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Note 1: Please refer to simplified corporate structure.
Note 2: The acquisition is subject to, among others, the approval of respective independent shareholders of the Company and China COSCO Holdings Company Limited in accordance with the requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Note 3: Upon completion of the transaction, the Company is entitled to receive all the dividends distribution of Sigma in relation to the acquisition of shares from 1st January 2010.

Source: COSCO Pacific Limited