China Shipping Container to buy $379 mln developer

SHANGHAI, July 7 (Reuters) - China Shipping Container Lines Co (601866.SS: Quote, Profile, Research) is likely to buy a port developer from its state-owned parent for 2.6 billion yuan ($379 million), the China Securities Journal reported on Monday, quoting industry sources.

Its parent, China Shipping (Group) Company, was auctioning all of its stake in the port developer on the Shanghai United Assets and Equity Exchange, and the newspaper quoted analysts as saying China Shipping Container Lines was likely to win the bid.

The Shanghai-based port developer, China Shipping Terminal Development Co, is engaged in port investment and development, logistics, warehouse stocking and transportation, the newspaper said.

China Shipping Container Lines Co (2866.HK: Quote, Profile, Research) had said it planned to use funds raised from its initial public offering to buy the port developer from its parent, the newspaper said.

The expected purchase would have limited impact on the company's earnings in the short term, but would help to upgrade the company's long-term profitability, the newspaper quoted industry analysts as saying. ($1=6.858 Yuan) (Reporting by Alfred Cang; Editing by Anne Marie Roantree)