Transport conglomerate China Merchants Holdings (International) Co Ltd said on Thursday it will record a gain of HK$195 million (US$25 million) from selling its oil tanker business to its parent firm.
The Beijing-backed firm has been moving its focus onto its container terminal business. The sale had been expected, although terms had not been known.
China Merchants said in a statement that it had struck a deal to sell Ming Wah Universal (Bermuda) Co Ltd, which owns seven oil tankers, to China Merchants Group Ltd for HK$1.31 billion (US$167.95 million).
The firm, which will join Hong Kong's blue-chip Hang Seng Index next month, has said it would phase out non-core businesses such as oil tankers and toll roads to focus on its container ports operations.
Shares in China Merchants rose 1.32 percent in early Thursday trade to HK$11.50, and have gained about 14 percent in the past three months.
Analysts estimated the asset sale would lift China Merchants' net profit by 12 percent in 2004.