Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. CHINA SHIPPING DEVELOPMENT COMPANY LIMITED (a joint stock limited company incorporated in the People s Republic of China with limited liability) (Stock Code: 1138) INSIDE INFORMATION AND RESUMPTION OF TRADING This announcement is made by the Company pursuant to Part XIVA of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) and Rule 13.09 of the Listing Rules. The Board is pleased to announce that China Ore Shipping, an associate company in which the Company holds 49% interest, entered into the Vessel Purchase Agreements on 19 May 2015 Brazil time as buyer with Vale Shipping as seller for the purchase of the Vessels at an aggregate consideration of approximately US$445 million (equivalent to approximately HK$3.449 billion). The Company expects to receive steady returns from its investment in China Ore Shipping as a result of its entry into the Vessel Purchase Agreements as well as the expected iron ore shipping businesses of China Ore Shipping. At the request of the Company, dealing in the shares of the Company has been halted with effect from 9:00 a.m. on 20 May 2015 pending the release of this announcement. Application has been made by the Company to the Stock Exchange for resumption of trading in the shares of the Company with effect from 9:00 a.m. on 21 May 2015 following the publication of this announcement. This announcement is made by the Company pursuant to Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and Rule 13.09 of the Listing Rules. 1
The Board is pleased to announce that China Ore Shipping, an associate company in which the Company holds 49% interest, entered into the Vessel Purchase Agreements on 19 May 2015 Brazil time as buyer with Vale Shipping, a wholly-owned subsidiary of Vale International, as seller for the purchase of the Vessels at an aggregate consideration of approximately US$445 million (equivalent to approximately HK$3.449 billion). The Company expects to receive steady returns from its investment in China Ore Shipping as a result of its entry into the Vessel Purchase Agreements as well as the expected iron ore shipping businesses of China Ore Shipping. The following sets forth the principal terms of the Vessel Purchase Agreements. VESSEL PURCHASE AGREEMENTS Date 19 May 2015 (Brazil time) Parties (a) China Ore Shipping as buyer; and (b) Vale Shipping as seller. Subject matter Pursuant to the Vessel Purchase Agreements, the Seller has agreed to sell and deliver and the Buyer has agreed to purchase the Vessels at an aggregate consideration of approximately US$445 million (equivalent to approximately HK$3.449 billion). The acquisition of the Vessels represents an upgrade of the shipping fleet of China Ore Shipping for its iron ore shipping and dry bulk businesses. Delivery Delivery of the Vessels is expected to be made on 2 June 2015. General Information COSCO Bulk is a limited liability company established in the PRC and a wholly-owned subsidiary of China Cosco. Its principal business is bulk cargo transportation. 2
China Ore Shipping is a limited liability company incorporated in the Singapore principally engaged in specialised iron ore shipping and dry bulk cargo business. As at the date of this announcement, China Ore Shipping was held by COSCO Bulk and the Company as to 51% and 49%, respectively. Vale Shipping is a limited liability company incorporated in the Singapore and a wholly-owned subsidiary of Vale International. It is principally engaged in owning, chartering and operating of vessels. Vale International is a limited liability company incorporated in the Switzerland and is principally engaged in trading. RESUMPTION OF TRADING At the request of the Company, dealing in the shares of the Company has been halted with effect from 9:00 a.m. on 20 May 2015 pending the release of this announcement. Application has been made by the Company to the Stock Exchange for resumption of trading in the shares of the Company with effect from 9:00 a.m. on 21 May 2015 following the publication of this announcement. DEFINITIONS In this announcement, the following expressions have the meanings set out below unless the context requires otherwise: Board Buyer or China Ore Shipping the board of Directors China Ore Shipping Pte. Ltd. ( ), a limited liability company incorporated under the laws of Singapore and in which COSCO Bulk and the Company hold 51% and 49% interest, respectively Company China Shipping Development Company Limited ( ), a joint stock limited company established in the PRC, the H shares of which are listed on the Stock Exchange, and the A shares of which are listed on the Shanghai Stock Exchange 3
China COSCO COSCO Bulk Director(s) Hong Kong Listing Rules PRC Seller or Vale Shipping Stock Exchange US$ Vale International Vessel(s) China COSCO Holdings Company Limited* ( ), a joint stock limited company incorporated in the PRC with limited liability, the H shares of which are listed on the Stock Exchange and the A shares of which are listed on the Shanghai Stock Exchange China COSCO Bulk Shipping (Group) Co., Ltd.* ( ( ) ), a company established under the laws of the PRC with limited liability and a wholly-owned subsidiary of China COSCO the director(s) of the Company the Hong Kong Special Administrative Region of the PRC the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited the People s Republic of China Vale Shipping Singapore Pte. Ltd., a company incorporated under the laws of Singapore with limited liability and a wholly-owned subsidiary of Vale International The Stock Exchange of Hong Kong Limited United States dollars, the lawful currency of the United States of America Vale International S.A., a company incorporated under the laws of Switzerland and a subsidiary of Vale S.A., a company incorporated in Brazil and the depositary receipts of which are listed on the Stock Exchange the four very large ore carrier(s) to be purchased by the Buyer from the Seller pursuant to the terms and conditions of the Vessel Purchase Agreements 4
Vessel Purchase Agreements the vessel purchase agreements entered into between the Buyer and the Seller dated 19 May 2015 (Brazil time) in respect of the purchase of the Vessels % per cent By Order of the Board China Shipping Development Company Limited Yao Qiaohong Company secretary Shanghai, the People s Republic of China 20 May 2015 * for identification purposes only The exchange rate adopted in this announcement for illustration purpose only is USD1.00 = HK$7.75. Such conversion should not be construed as a representation that the currency could actually be converted into HK$ at that rate or at all. As at the date of this announcement, the Board comprises Mr. Xu Lirong, Mr. Zhang Guofa, Ms. Su Min, Mr. Huang Xiaowen, Mr. Ding Nong, Mr. Liu Xihan, Mr. Yu Zenggang, Mr. Han Jun and Mr. Qiu Guoxuan as executive Directors, Mr. Zhang Jun, Mr. Wang Wusheng, Mr. Ruan Yongping, Mr. Ip Sing Chi and Mr. Wang Guoliang as independent non-executive Directors. 5