News:Asia

CSIC to buy stakes in two shipbuilding subsidiaries

China Shipbuilding Industry Corp (CSIC) is making a move to increase its stake in its two shipbuilding subsidiaries by buying their equity interests currently in the hands of other state-owned enterprises (SOEs).

CSIC announced that it will buy 42.99% equity interest of Dalian Shipbuilding Industry Co (DSIC) and 36.15% equity interest of Wuchang Shipbuilding Industry Corp (WSIC).

CSIC said it will issue shares to purchase the stakes of the subsidiaries from the compatriot SOEs.

At present, the two CSIC subsidiaries are co-owned by eight other SOEs including China Cinda Asset Management, China Orient Asset Management, China Life Insurance Co, and Huabao Investment Limited Co.

CSIC said the assets swap is part of its ongoing internal reorganisation in response to the sluggish shipbuilding sector. The group said that a reorganisation is a necessary move as part of an overall effort to manage costs and raise efficiency.

Since 31 May 2017, CSIC had suspended its shares trading on the Shanghai Stock Exchange to facilitate the latest yard asset reorganisation.

In 2016, DSIC itself underwent an internal restructuring as it acquired 100% equity interest of its sister unit Shanhaiguan New Shipbuilding Industry. WSIC also took over the assets of sister unit Qingdao Beihai Shipbuilding Heavy Industry.

Posted 14 September 2017

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