Singapore-listed Yangzijiang Shipbuilding announced disposal of its 50% equity interest in the registered capital of ship demolishing business Jiangsu Huayuan Metal Processing (JHMPCO).
“In view of the weakening demand and increased costs in relation to higher requirement on environmental regulations, it is in the best interest of the company to dispose the 50% equity interest in JHMPCO at a consideration of RMB140m,” the yard said in a release.
After the disposal, Yangzijiang will still hold a 50% stake in the company. However, the core business of JHMPCO will be changed to include steel cutting and processing, scrap steel crushing, shearing, and general cargo warehousing, wholesale of scrap steel, non- ferrous metals and ferrous metals, and coal washing, sale, handling, import and export.
The company’s wholly-owned subsidiaries, Jiangsu New Yangzi Shipbuilding Co., Ltd and Baoling Investments Pte Ltd had invested equity interests of 70% and 30% respectively in JHMPCO.
“The disposal is in tandem with the [Yangzijiang’s] strategy to re-position its businesses activities,” the yard added.
[mappress] Press Release, August 14, 2014