Slaughter and May is advising OOIL in relation to the sale of LBCT LLC to a consortium led by Macquarie Infrastructure Partners

30 Apr 2019

Slaughter and May, Hong Kong, is advising Orient Overseas (International) Limited (OOIL), in relation to the sale of LBCT LLC to a consortium led by Macquarie Infrastructure Partners, and the entry into a 20-year terminal services agreement, for a total consideration of US$1.78 billion (subject to post-completion adjustments). LBCT LLC operates the Long Beach Container Terminal in Long Beach, California, United States.

The sale is undertaken in accordance with the National Security Agreement entered into by OOIL, Faulkner Global Holdings Limited, a subsidiary of COSCO SHIPPING Holdings Co., Ltd, and the U.S. Department of Homeland Security and the U.S. Department of Justice in 2018 to satisfy one of the regulatory approval requirements of the voluntary general offer by COSCO Shipping Holdings and Shanghai International Port (Group) Co., Ltd to acquire all the issued shares of OOIL, which Slaughter and May, Hong Kong, also advised on. Under the National Security Agreement, OOIL committed to divest its entire interest in the Long Beach Container Terminal Business.

J.P. Morgan is the financial adviser to OOIL. Hughes Hubbard & Reed is advising OOIL on US law matters.

OOIL is one of the largest container shipping companies in the world and has been listed on the Main Board of the Hong Kong Stock Exchange since 1992 (Stock Code: 316). The OOIL Group is principally engaged in the provision of container transport and logistic services. Orient Overseas Container Line Limited, a wholly owned subsidiary of OOIL, is one of the world’s largest integrated international transportation, logistics and terminal companies, and is an industry leader in the use of information technology and e-commerce to manage the entire cargo transport process.

Macquarie Infrastructure Partners operates within the Macquarie Infrastructure and Real Assets (“MIRA”) division of the Macquarie Group. MIRA is one of the world’s leading alternative asset managers and is part of Macquarie Asset Management, the asset management arm of Macquarie Group. Macquarie Group is a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities.

Contacts

Peter Brien (partner), Benita Yu (partner), Eilene Teh (associate), Esther Yee (associate), James Feng (associate), Clare Tsang (associate), Wong Suet-Wa (associate)


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