Orient Overseas (International) Limited

Orient Overseas

Founder of Orient Overseas, Tung Chao-yung, operated the first all-Chinese crewed ship between Hong Kong and Europe and the east coast of the United States^[4] in 1947.^[5] However, Tung Chao-yung already established his Hong Kong operation in 1937.^[6] He was the vice-president of Shipowners Association in Tianjin at that time.^[6]

Tung Chao-yung then^[when?] named the company Orient Overseas Line.^[4] In 1969, the business was renamed as Orient Overseas Container Line.^{[4][non-primary source needed]}

The holding company of the group, Orient Overseas Container (Holdings) Limited, was incorporated on 27 February 1973.^[7] It was a listed company in Hong Kong, Far East [zh] and Kam Ngan stock exchanges since May 1973.^[8] These exchanges were merged in 1986. Jardine Matheson was a minority shareholder of the listed company.^[6]

In 1973, Orient Overseas Line purchased the passenger liner President Cleveland and renamed it Oriental President.^[9] Also in 1973, Orient Overseas commissioned the building of Wall Street Plaza (88 Pine Street), an office building in New York, as well as a nearby plaza. The building was built by I. M. Pei's company and designed by architect Jim Freed.^[10]

In 1974, Orient Overseas Container (Holdings) acquired a bulk freighter company from the Tung family's C.Y. Tung Group, for HK$43 million.^[11] In 1976, the listed company acquired additional assets from the Tung family, including two container ships and 33% shares of another container shipping company, Dart Container Service.^[12][13]

In 1980, Orient Overseas Container (Holdings) acquired a British shipping company, Furness, Withy & Co.^[14]

Shortly before the death of Tung Chao-yung in 1982,^[14] Tung Chee-hwa, his eldest son, succeeded to be the chairman of Orient Overseas.^[13]

In 1983, Orient Overseas Container (Holdings) Limited, was renamed to Orient Overseas (Holdings) Limited.^[7]

In February 1986, Orient Overseas (Holdings) Limited submitted a plan to the creditors for re-structuring the group of companies, including the formation of a new business unit centered on Orient Overseas Container Line Limited.^[15] In October, Crédit Commercial de France cancelled the application to the court on liquidate Orient Overseas.^[16] Orient Overseas was suspended in the Stock Exchange of Hong Kong (SEHK) due to its financial problem, which the suspension was lifted in February 1987.^[17] In the same year, Orient Overseas announced to consider to close down the oil drilling business unit.^[18] In November, the group announced to sell some subsidiaries of group, such as Kuwait Hong Kong General Insurance and others companies.^[19] The insurance and oil drilling businesses were acquired by China Merchants Group.^[20]

In May 1988, Orient Overseas acquired additional stakes in the Terminal No. 2, 4 and 6 of Kwai Tsing Container Terminals from Hongkong International Terminals Limited.^[21]

Orient Overseas (International) Limited

Orient Overseas (International) Limited (OOIL), was incorporated in Bermuda on 29 July 1986.^[22] Some time later, it became the new holding company of the group. OOIL became a listed company on 31 July 1992.^[23] OOIL's predecessor, Orient Overseas (Holdings) Limited (OOHL), ceased to become a listed company in the same year. Each OOHL's share is offered 1.08431411 shares of OOIL in exchange.^[24] Orient Overseas (Holdings) was deregistered and dissolved in 2005.^[25]

The listed company also sold the stake in Furness Withy and the Kwai Tsing Container Terminals during its restructuring.^[26] The company paid dividend again in 1994, the first time since the restructuring.^[26]

In 1996, Tung Chee-chen, Tung Chao-yung's younger son and Tung Chee-wah's younger brother, took over the chairman position of OOIL, since Tung Chee-wah's election as Chief Executive of Hong Kong.^[4]

In 2006, Orient Overseas sold four container terminals to the Ontario Teachers' Pension Plan.^[27]

In July 2017, OOIL received a US$6.3 billion take over bid from its Chinese rival, COSCO Shipping. The bid has been accepted by the Tung family, subject to shareholder and regulatory approval.^[28][29] The takeover was completed in 2018.^[4]

In April 2019, OOIL sold a container terminal in Long Beach to Macquarie Group for US$1.78 billion.^[30]

In May 2019, Orient Overseas Associates (the holding company in the US) backed out of a deal to lease office space at Wall Street Plaza in New York to Amnesty International. This raised speculation that interference from mainland China-headquartered COSCO Shipping was involved, as denying leases is out-of-character for building owners.^[31]