Qingdao Port International, a subsidiary of Shandong Port Group (SPG) announced that the Shanghai Stock Exchange accepted Qingdao Port's transaction on Sept 26 to acquire equity in four companies under SPG engaged in liquid bulk terminal operations. 

The total transaction value is 9.44 billion yuan ($1.34 billion), with funds to be raised through a share issuance via an inquiry method.

Qingdao Port plans to acquire stakes in four companies specializing in liquid bulk terminal operations under SPG. [Photo/WeChat account: Shandong-Port]

The acquisition involves Qingdao Port acquiring 100 percent equity in Rizhao Port Oil Terminal and 50 percent equity in Rizhao Shihua Crude Oil Terminal, both of which are held by SPG Rizhao Port Group, as well as 53.88 percent equity in Shandong United Energy Pipeline Transportation and 51 percent equity in Shandong Source Pipeline Logistics from SPG Yantai Port Group.

The merger and reorganization give Qingdao Port access to the existing high-quality liquid bulk terminal assets of SPG Rizhao Port Group and Yantai Port Group, marking a significant step forward for SPG in its efforts to accelerate the integrated consolidation of high-quality liquid bulk terminals in Shandong province, while also boosting the growth of its main business.

Based on audited financial data from 2023, Qingdao Port's total asset size is expected to increase by over 28 percent, its revenue by about 18 percent, and its earnings per share by over 5 percent after the completion of the transaction.