China Merchants Industry Holdings is looking to purchase a majority stake in AVIC International Maritime.
Namely, United Overseas Bank Limited has, on behalf of the company’s subsidiary China Merchants Industry Investment Limited, submitted a pre-conditional voluntary general offer for all the issued and paid-up ordinary shares in the company.
If finalized, the deal would see China Merchants take over 73.87% of AVIC shares at a price of SGD 0.15, or a total of SGD 31.64 million (USD 22.7 million).
The agreement marks AVIC International’s gradual withdrawal from the shipbuilding industry on the back of a drop in global demand for new vessels, the Singapore-based company explained.
If the pre-condition is not satisfied on or before the long-stop date of December 26, 2019, or another date as agreed by the Securities Industry Council of Singapore (SIC), the offer will not be made.