Longhe in the crosshairs

Sino-Global Shipping closes in on acquisition of Qingdao Zhenghe’s management unit.

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A leading US logistics company appears to be moving forward with plans to purchase Longhe Ship Management from Qingdao Zhenghe Shipping.

In a statement Sino-Global Shipping America said it has signed a non-binding acquisition proposal to buy the firm from the diversified Chinese operator but offered few details.

“The exact terms and conditions of the planned acquisition have not been determined and are subject to further negotiation between the two parties as well as review and approval of Sino-Global's board of directors,” it told investors Tuesday.

Sino-Global pointed out that Longhe is headquartered in Hong Kong where it provides ship and crew management services to a number of Qingdao Zhenghe’s bulkers.

According to the Clarksons Shipping Intelligence Network database the Chinese operator and its affiliates currently oversee a fleet of more than two dozen bulkers and cargoships.

Sino-Global is based in New York and led by chairman and chief executive Cao Lei. Last month the company completed an initial public offering in the US and today its shares trade on Nasdaq.