Cosco

Cosco: The only bright spot for Cosco Corp is the proposed Rmb1,465.8m buyout for its entire loss-making shipbuilding business by parent China COSCO Shipping Corp, which is pending China regulatory clearance and shareholder's approval at the upcoming EGM to be held in Jul/ Aug.Target closing date for the deal is in 2H17.Post-disposal, Cosco is expected to record a disposal gain of ~$285m, which will turn its balance sheet into a healthy net cash position of $300m ($0.13/share).