Yangzijiang Shipbuilding Plots USD 153 Mn Share Placement
- Business & Finance
Chinese shipbuilder Yangzijiang Shipbuilding is launching a private placement of 137 million shares setting sights at around SGD 209 million (USD 153.8 million) of cash from the sale.
Singapore-listed Yangzijiang revealed it intends to use up to 50% of the net proceeds to fund new investments and business expansion through acquisitions, joint ventures and/or strategic alliances as and when opportunities arise.
The shares will be placed to institutional and other investors at a price of SGD 1.53 per share, a discount of approximately 4.07 % to the volume weighted average price of SGD 1.5949.
The remaining amount of the proceeds is set to be used for working capital and general corporate purposes, including the repayment of bank borrowings and loans.
“The company will make periodic announcements on the use of the net proceeds as and when they are materially disbursed, and provide a status report on the same in the company’s annual report,” the company said.
As World Maritime News reported earlier this week, the shipbuilder has won an order for up to six Panamax bulkers from Greek shipowner Angelakos Hellas.
The order, placed on August 25, includes four firm 82,000 DWT bulk carriers and options for two additional newbuilds, data from VesselsValue indicates.
The Panamaxes, the price of which was not disclosed, are scheduled for delivery in 2019.
During the second quarter, the company received six effective orders totaling in USD 133 million.
The six contracts included three 1,800 TEU boxships that were exercised from the existing options, while the remaining three were new shipbuilding contracts for 82,000 DWT bulk carriers.
Yangzijiang Shipbuilding said in July that it had secured a total of nineteen shipbuilding contracts with an aggregate value of USD 450 million.
World Maritime News Staff