Yangzijiang buys stake in Xinfu Yard
Yangzijiang Shipbuilding (Holdings) Ltd., one of the largest private shipbuilders in China, has entered into a sale and purchase agreement with Sanfu Shipbuilding Holdings for the purchase of the remaining 20% equity stake in Jiangsu Yangzi Xinfu Shipbuilding Co., Ltd.
As informed, the stake in Xinfu Yard will be purchased for an aggregate consideration of RMB 650 million ($100.3 million), to be fully funded by 100 million treasury shares of the group.
Xinfu is involved in the business of shipbuilding, production and processing of large-scale steel structures and operates as one of the group’s major shipyards. Equipped with the largest dock facility amongst the group’s shipyards, the Xinfu Yard builds mid to large-sized vessels and is pivotal to the group’s future growth plans to build large vessels.
Prior to the transaction, Yangzijiang and the group’s wholly-owned subsidiary, Jiangsu New Yangzi Shipbuilding Co., Ltd owned 12.5% and 67.5% respectively of the issued share capital of Xinfu Yard.
Post-transaction, Xinfu Yard will become a fully owned subsidiary of the group.
The transaction is expected to be earnings accretive for the group and is part of Yangzijiang Shipbuilding’s efforts to enhance long-term shareholder value.
“Since its incorporation in 2007, the Xinfu Yard has grown from strength to strength and established a strong track record in shipbuilding. The further acquisition signifies a huge investment in one of Yangzijiang’s key business units and in our existing major shipyard,” Ren Letian, Executive Chairman and CEO of the Group, commented on the proposed transaction.