China Merchants Port Holdings has entered into an agreement with Fujian Transportation Maritime Silk Road Investment and Management (Fujian TMSR), an affiliate of Fujian Provincial Communication Transportation Group (FJCT), to transfer part of its share of Hambantota Port in Sri Lanka.
Under the agreement, China Merchants will sell 23.5% equity interest its wholly owned subsidiary Gainpro Resources, which holds 85% interest of Hambantota International Port Group (HIPG), to Fujian TMSR for a price of $268m.
HIPG is principally engaged in developing, operating, managing the Port of Hambantota under a concession agreement.
China Merchants sees Port of Hambantota as a strategic hub linking Asia Pacific with Europe and North America and it believes FJCT could promote the development of the port with its expertise in the port industry and the strategic coordination between Hambantota and the ports under FJCT.
Hambantota Port is a comprehensive deepwater port with 10 berths handing containers, bulk cargos, general cargos, roro cargos, liquid bulk and marine bunkers.