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Beijing approaches Yangzijiang to consider investing in Rongsheng

Beijing approaches Yangzijiang to consider investing in Rongsheng
Privately-owned Yangzijiang Shipbuilding has been approached by the relevant Chinese government authorities to consider an acquisition of a stake in ailing Rongsheng Heavy Industries.

Singapore-listed Yangzijiang disclosed to the stock exchange after a recent news article said that the company is in “advanced talks” to take a stake in Rongsheng.

“As of date of announcement (9 March), the management of Yangzijiang Shipbuilding have not made any decision regarding the acquisition,” Yangzijiang said.

The company added that it has been approached by various parties to explore potential acquisitions from time to time.

Ren Yuanlin, executive chairman of Yangzijiang, told Seatrade Global recently that the shipbuilder’s acquisition targets would have to be a company with considerable operations and with products that can complement Yangzijiang’s existing offerings.

“Any acquisitions made will be based on timing, price and market conditions. We can capture opportunities but we do not necessarily need to create opportunities,” Ren said.

Jiangsu-based Rongsheng is currently going through a restructuring and it aims to complete the process by the end of June 2015. Rongsheng has asked a government authority to help out with the negotiations with independent third parties on the investment and restructuring of the company.

Meanwhile, Yangzijiang has nominated Ren Letian, son of Ren Yuanlin, as the new ceo of the group with effect from 1 May 2015.

Ren Yuanlin will remain as the executive chairman of the group and continue to head the board of directors.

Ren Letian joined the group in 2006 and has since assumed several managerial roles at various levels and business divisions in the group. He is currently the general manager of Jiangsu New Yangzi Shipbuilding.