Shanghai-listed Cosco Holdings has announced that it has received a notice from its parent Cosco Group, in which the group plans to transfer 7.45% equity shares of the company to three state-run companies.

Cosco Holdings will transfer 3%, 2.45% and 2% equity shares to Beijing Chengtong Jinkong Investment, Wuhan Iron & Steel and CSSC respectively for free. The deal is still waiting approval from the state council.

Cosco said the share transfer is not involved in any purchase deals and the move is to create synergies between upstream and downstream companies.