Sino-Global in takeover

US shipping agency Sino-Global Shipping America has acquired Hong Kong-based Longhe Ship Management (LSM) in a deal to broaden its interests.

The agreement comes one month after the US company signed a non-binding acquisition proposal to buy LSM from China’s Qingdao Zhenghe Shipping (QZS).

Sino-Global had also reached a strategic agreement with the diversified Chinese owner in late May.

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 will issue up to 200,000 shares of its common stock to OZS’ president, Deming Wang, as payment for LSM.

In connection with the takeover, the US firm appointed Africa Li as its new chief technology officer (CTO).

He has 30 years of experience and served as an assistant to Wang from May 2010 through to the present.

Lei Cao, chief executive of Sino-Global, said: “We are excited to enter into the ship management business and look forward to combining our experience managing shipping logistics and serving as a shipping agent with expertise of LSM in managing ships.

"We are now allowed to expand into serving commercial ships even more directly.”

In June, the company completed an initial public offering in the US and one month later its shares started trading on Nasdaq.