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<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published August 11, 2008
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Cosco tries to soothe market over changes
It says Ji's departure is 'normal' and he will be deployed elsewhere in group
By CHOW PENN NEE
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(SINGAPORE) Four days after Cosco Corporation (Singapore) shocked the market by announcing that its vice-chairman, and president Ji Hai Sheng was retiring, it is trying to calm the waters.
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</TD></TR><TR class=caption><TD>Mr Ji: He will now be given two or three weeks to hand over the reins, instead of doing so immediately </TD></TR></TBODY></TABLE>In a statement issued to the Singapore Exchange yesterday, the Chinese shipbuilder sought to paint Mr Ji's retirement as a 'normal' management transition. It also emphasised that Mr Ji would be deployed elsewhere within the group.
The company also said that Mr Ji would hand over the reins to his successor within two or three weeks - instead of immediately, as its previous announcement had suggested.
Cosco's announcement on Aug 6, which had said that the changes would kick in from Aug 7, had spooked investors and hit its stock price.
In its statement yesterday, it said: 'The Board would like to clarify that the retirement of Mr Ji Hai Sheng as the vice-chairman, president and executive director on 7 August 2008 and the appointment of Mr Jiang Li Jun as his replacement on the same date are steps taken within the framework of the normal planned management renewal processes put in place by China Ocean Shipping (Group) Company ('Cosco China'), the holding company of the Company.'
The statement added that in conjunction with this management change in Singapore, similar shifts in leadership have also recently taken place in Cosco companies in America and Hong Kong.
Mr Ji had told The Straits Times that he was informed of the board's decision only on the same day on which the announcement came out.
The company also said that it expects the handing over process from Mr Ji to Mr Jiang to be completed in the next 2 to 3 weeks. This is in contrast to the immediacy of the previous statement issued on Aug 6, which had said that Mr Ji would retire with immediate effect 'from 7 August 2008'.
The previous statement had not spelt out the reasons why Mr Ji was stepping down. Following this, Cosco came under fire from the market. Investors dumped the stock amid fears that there might be something amiss.
In yesterday's statement, Cosco sought to allay investors' fears by saying that Mr Ji will be assuming another position within the Cosco China group of companies, 'in line with its planned management renewal processes'. The company also thanked Mr Ji for his contributions in the statement yesterday.
The company has been rocked by changes at the management level in recent months. Last month, then- chairman and non-executive director Wei Jiafu stepped down. 'Succession planning and leadership renewal' was also the reason cited by the company for Mr Wei's departure. Cosco's former financial controller Teo Chuan Teck was fined $320,000 by the Monetary Authority of Singapore for insider trading of Cosco shares, also last month.
A day after the media reported on Mr Ji's retirement, shares of the one time stock market favourite plunged from $2.70 to $2.44 - its lowest level in more than 15 months, with as much as 73.36 million shares being traded.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Cosco tries to soothe market over changes
It says Ji's departure is 'normal' and he will be deployed elsewhere in group
By CHOW PENN NEE
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
</TD><TD>Email this article</TD></TR><TR class=font10><TD align=right width=20></TD><TD>Print article </TD></TR><TR class=font10><TD align=right width=20></TD><TD>Feedback</TD></TR></TBODY></TABLE>(SINGAPORE) Four days after Cosco Corporation (Singapore) shocked the market by announcing that its vice-chairman, and president Ji Hai Sheng was retiring, it is trying to calm the waters.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Mr Ji: He will now be given two or three weeks to hand over the reins, instead of doing so immediately </TD></TR></TBODY></TABLE>In a statement issued to the Singapore Exchange yesterday, the Chinese shipbuilder sought to paint Mr Ji's retirement as a 'normal' management transition. It also emphasised that Mr Ji would be deployed elsewhere within the group. The company also said that Mr Ji would hand over the reins to his successor within two or three weeks - instead of immediately, as its previous announcement had suggested.
Cosco's announcement on Aug 6, which had said that the changes would kick in from Aug 7, had spooked investors and hit its stock price.
In its statement yesterday, it said: 'The Board would like to clarify that the retirement of Mr Ji Hai Sheng as the vice-chairman, president and executive director on 7 August 2008 and the appointment of Mr Jiang Li Jun as his replacement on the same date are steps taken within the framework of the normal planned management renewal processes put in place by China Ocean Shipping (Group) Company ('Cosco China'), the holding company of the Company.'
The statement added that in conjunction with this management change in Singapore, similar shifts in leadership have also recently taken place in Cosco companies in America and Hong Kong.
Mr Ji had told The Straits Times that he was informed of the board's decision only on the same day on which the announcement came out.
The company also said that it expects the handing over process from Mr Ji to Mr Jiang to be completed in the next 2 to 3 weeks. This is in contrast to the immediacy of the previous statement issued on Aug 6, which had said that Mr Ji would retire with immediate effect 'from 7 August 2008'.
The previous statement had not spelt out the reasons why Mr Ji was stepping down. Following this, Cosco came under fire from the market. Investors dumped the stock amid fears that there might be something amiss.
In yesterday's statement, Cosco sought to allay investors' fears by saying that Mr Ji will be assuming another position within the Cosco China group of companies, 'in line with its planned management renewal processes'. The company also thanked Mr Ji for his contributions in the statement yesterday.
The company has been rocked by changes at the management level in recent months. Last month, then- chairman and non-executive director Wei Jiafu stepped down. 'Succession planning and leadership renewal' was also the reason cited by the company for Mr Wei's departure. Cosco's former financial controller Teo Chuan Teck was fined $320,000 by the Monetary Authority of Singapore for insider trading of Cosco shares, also last month.
A day after the media reported on Mr Ji's retirement, shares of the one time stock market favourite plunged from $2.70 to $2.44 - its lowest level in more than 15 months, with as much as 73.36 million shares being traded.
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