Hong Kong-listed Orient Overseas (International) Limited (OOIL), operator of box carrier Orient Overseas Container Line (OOCL), announced that it is not aware of or engaged in any talks centering on the bidding of the company or the carrier.
In an emailed “voluntary announcement” on January 20, OOIL said it “has noted certain recent media reports which mentioned that there may be a potential bid for the Company’s subsidiary, Orient Overseas Container Line (‘OOCL’) by other shipping companies.”
“The Company wishes to clarify that the Company and OOCL is not aware of, nor is it involved in any bid relating to the Company or OOCL,” the statement said.
It further asked shareholders and potential investors of the company to “exercise caution when dealing in the shares of the Company.”
The terse statement by the OOIL Board comes amid media reports over the past few days of the impending sale of OOCL to a rival carrier.
Reports quoted unnamed sources that said OOCL was the likely next victim of the merger and acquisition activity sweeping the global container shipping industry. Potential buyers named included China’s Cosco and Taiwan’s Evergreen Line.
OOCL is ranked as the fourth largest container carrier in Asia in terms of tonnage, following Cosco, Evergreen, and Yang Ming Marine Transport, and as the ninth largest container carrier worldwide.
The rumors came as the industry suffers a global downturn. Analyst Dynamar noted that for the first time as a group, the 25 largest container ship operators collectively posted a net loss in 2015.
Photo: Bahnfrend
