Cosco Shipping International on Thursday said it received shareholders' approval for the 1.47 billion yuan (S$297.1 million) divestment of its loss-making yard operations.
About 98.4 percent of the shares voted at a special meeting in Singapore voted for the disposal, the company said.
The disposal includes sale of 51 percent stake in Cosco Shipyard, 50 percent stake in Nantong Cosco Shipyard and 39.1 percent interest in Dalian Cosco Shipyard to Cosco Shipping Heavy Industry.
Cosco Shipping Heavy Industry is a wholly-owned subsidiary of Shanghai-based China Cosco Shipping, the parent company of Cosco Shipping International.
The proposed disposal will enable Cosco Shipping International to exit from a loss-making business and create cash for investment in potential future new businesses, substantially reduce the company's debt and improve the its financial position.
The company intends to use the sale proceeds from the proposed disposal to fund future projects, which may include mergers and acquisitions, and for working capital requirements.
Shares in Cosco Shipping International rose about 2 percent to S$0.305 on the Singapore Exchange. The stock has gained about 9 percent so far this year.
