Hong Kong’s New World First Ferry Services to be acquired by Chu Kong Shipping Enterprises

Cargo transport firm Chu Kong Shipping Enterprises (Group) said on Monday that it plans to acquire 60 per cent of New World First Ferry Services from NWS Holdings for HK$232.8 million (US$30 million).

Set up in 1999, NWFF runs five inner harbour and outlying island ferry routes in Hong Kong. Following the purchase, due to be completed on May 31, NWFF will become a non-wholly owned subsidiary of Hong Kong-listed CKSG.

The remaining 40 per cent will be continue to be owned by conglomerate NWS Holdings, flagship of Hong Kong-listed New World Development.

In an exchange filing after market close, CKSG – which operates cargo transport, storage as well as ferry services between Hong Kong and mainland China – said NWFF will “further complement” its existing business and “enhance the group’s competitiveness in passenger transportation business”. The company said it has used “internal resources” to fund the acquisition.

NWFF’s passenger fares will remain the same until the end of its existing licences at the end of March 2021. Following that, it would “continue to provide reliable and comfortable ferry services at a stable fare in adherence to the terms and conditions of the licence set out by the government,” according to a statement by the three companies.