Singamas decided to sell four of its container manufacturing units in China to COSCO Shipping Financial Holdings. The Chinese shipping giant paid $562m (RMB3.8bn).

According to the statement, Singamas will sell the four subsidiaries Qidong Singamas, Qingdao Pacific, Ningbo Pacific and Singamas Container (Shanghai) to COSCO. Qingdao Pacific also has a fully owned subsidiary Qidong Pacific.

Below you can find the Payment Terms of the agreement:

The Consideration is payable in four installments:

The first installment of RMB 190 million, shall be paid into the thirdparty escrow account as jointly designated by the Company and Purchaser within 10 Business Days after the Agreement having become effective and the Agreement and the transactions contemplated thereunder having been approved by the Shareholders at the EGM. The First Instalment shall be released to the Company when the Second Instalment is paid, but may, subject to the written consent of the Company and the Purchaser, be released in advance to pay the taxes in connection with the transfer of the Sale Interests

The second installment of RMB 2,280 million, shall be paid within 10 Business Days (whichever is later): (a) upon the satisfaction of (or the waiver of) the Conditions Precedent; and (b) the Closing of each Target Company

The third installment of RMB 1,030 million (and, subtracting the Profit or Loss of the Target Companies during the Transition Period and the Profit or Loss after Closing (where such figures are negative), or adding the Profit or Loss after Closing (where such figure is positive)), shall be paid to the Company within 10 Business Days after (whichever is later): (a) Target Companies having recovered its receivables prior to the Closing Date; (b) the Company having completed the tax declaration and payment in respect of the transfer of Sale Interests and the Company having provided evidence of such declaration and payment to the Purchaser; and (c) the Target Companies performed or complied with certain tasks or obligations in relation to certain matters identified during the due diligence process as agreed between the Company and the Purchaser as specified in the Agreement in respect of its business, environmental and intellectual property affairs

The fourth installment of RMB 300 million, shall be paid at the same time as the payment of the Third Installment. The Fourth Installment shall be paid into a third party escrow account as jointly designated by the Company and Purchaser as security deposit. The release of the Fourth Installment shall be subject to certain conditions.