On 29 June 2020, Fujian Provincial Communication Transportation Group Co. LTD (FJCT), Fujian Transportation Maritime Silk Road Investment and Management Co., Limited (Fujian TMSR) and China Merchants Port Holdings Company Limited (CMPort) executed a Share Transfer Deed in relation to equity investment in the Hambantota Port in Sri Lanka. FJCT acquired approximately 23.53% of the shares of the target company with US$268 million through Fujian TMSR, its wholly-owned subsidiary incorporated in Hong Kong. The Hambantota Port project is the first project in Sri Lanka where the entire port area will be invested and managed by a company with foreign investment. It is also one of the largest infrastructure projects that Chinese enterprises have participated in. and is the first “Belt & Road” project for FJCT, which marks an important step in its “going global” strategy.
FJCT mainly engages in water transportation, road transportation, storage logistics, construction and operation of port terminal infrastructure, renewable resources recycling, sales of pharmaceutical and medical equipment, and commercial circulation. It is the largest logistics enterprise and public terminal operatorin in Fujian province . The Port of Hambantota is in a strategic position occupying a prime location within 10 nautical miles to the main shipping route connecting Asia Pacific with Europe and North America.
King & Wood Mallesons acted as the lead deal counsel for FJCT . The successful signing of the transaction documents is a significant milestone for our client, and KWM will continue to work with FJCT to ensure smooth the closing of the transaction.
The project was led by partner Wang Lixin, and supported by Liu Xiaoping and Pei Yiliang.