Guangzhou Shipyard to buy CSSC unit from parent
Guangzhou Shipyard International is paying 4.53 billion yuan (HK$5.74 billion) for CSSC Huangpu Wenchong Shipbuilding as part of an asset injection by state-owned parent China State Shipbuilding.
Guangzhou Shipyard International is paying 4.53 billion yuan (HK$5.74 billion) for CSSC Huangpu Wenchong Shipbuilding as part of an asset injection by state-owned parent China State Shipbuilding.
Guangzhou Shipyard plans to issue 271.6 million shares to the parent and pay the balance of 679.1 million yuan in cash, according to a statement filed with the Hong Kong stock exchange.
It will also buy shipbuilding assets from Yangzhou Kejin Shipyard for 968 million yuan in the form of 68.3 million new shares.
The restructuring is part of the mainland's broader efforts to deal with overcapacity in the shipbuilding industry. With Huangpu Wenchong building military vessels, the purchase would also "deepen reform of military enterprises", Guangzhou Shipyard said on Friday.
Its parent is the mainland's largest shipbuilder.
Guangzhou Shipyard, based in the capital of Guangdong province, announced the disposals of some units and property in September.