HONG KONG, Jul 10 (FAM) – Cosco Shipping and Shanghai International Port (Group) have offered to acquire all of the issued shares of Orient Overseas (International), the shipping company held by the family of Tung Chee-hwa, the SAR’s first chief executive, in a deal worth HK$49.2 billion.

The family, which has deep ties to Beijing, owns 69 percent of the company and will pocket HK$34 billion. The deal values each OOIL share at HK$78.67, representing a premium of 31 percent compared to Friday’s closing price of HK$60.

In January, The Wall Street Journal reported that Cosco Group was preparing a bid to take over Orient Overseas Container Line, the container shipping unit of OOIL, for US$4 billion (HK$31.1 billion).  Shares of OOIL have risen over 70 percent since the start of the year.