Yangzijiang looks to raise $154m from share placement

China’s privately-owned Yangzijiang Shipbuilding is looking to raise SGD209.61m ($154.42m) by way of private placement of 137m ordinary shares to institutional and other investors.

The placement transaction was entered into with JP Morgan (S.E.A.) Limited, which has agreed to either procure subscribers or itself subscribe for the 137m shares.

“The company 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, with the remainder to be used for working capital and general corporate purposes of the group, including the repayment of bank borrowings and loans,” Yangzijiang stated.

The placement shares will be priced at SGD1.53 per share, representing a discount of approximately 4.07% to the volume weighted average price of around SGD1.59 for trades done on 29 August, being the day immediately preceding the date that the placing agreement was signed.

Singapore-listed Yangzijiang said its associated firm Yangzi International Holdings will lend the 137m ordinary shares in the capital of the group for sale to subscribers.

Yangzi International is beneficially owned by the YZJ Settlement, where Yangzijiang’s executive chairman Ren Yuanlin has a deemed interest.

A settlement date of 6 September has been scheduled for the placement agent to deliver the gross proceeds to Yangzijiang.

Posted 31 August 2017

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