HONG KONG's Orient Overseas (International) Limited (OOIL) has announced that it has entered into a Placing and Subscription Agreement with Faulkner Global Holdings Limited, its Cosco Shipping Holdings as well as JP Morgan, as announced on the Hong Kong Stock Exchange on January 22.

Through top-up placement of existing shares, the effect of this will be the issuance of 11.4 million new shares by OOIL, which represents 1.82 per cent of the existing share capital of the company.

While Cosco Shipping Holdings will not reduce the number of shares it holds in OOIL, this arrangement will see the entry of new institutional investors to our shareholder register, from all over the world.

The net proceeds received by OOIL will be HK$923.72 million (US$120 million). The company intends to use the proceeds to pay for vessels under construction and purchase of containers and related assets, or for other possible investments.

By issuing further shares, it is hoped that more trading in OOIL stock (listed on the Hong Kong stock exchange with Stock Code 316) will become possible, and that more and more potential shareholders may be attracted to consider investing in OOIL, based on the Group's long-standing market reputation, competitive position and performance over the years.

OOIL total revenues in excess of US$6.9 billion, has principal business activities in container transport and logistics services. Listed on The Stock Exchange of Hong Kong, the OOIL Group has more than 410 offices in over 85 countries/regions.