The company is to sell 53.01% stakes of Shanhaiguan Shipbuilding Industry and 67% stake of Qingdao Wuchang Shipbuilding Industry. The assessed equity value of the stakes is RMB1.189bn.
The depressed offshore engineering market brought about sustained losses to the company. In 2017, the overall deficit from offshore engineering arms of CSICL was RMB7.69bn. Shanhaiguan Shipbuilding Industry and Qingdao Wuchang Shipbuilding had suffered great losses in recent years, which caused negative impact on the company’s profitability.
The offshore engineering assets disposal will help the company to reduce its financial burden, stated CSICL.
Once the transaction is completed, the company will focus on naval ship design and construction.
Authorised by State Asset Supervision and Administration Commission in 2018, China Shipbuilding Industry Co., ltd (CSICL) was jointly established by CSIC, Anshan Steel Group Corporation and China Aerospace Science And Technology Corporation.
The five business sectors of the company cover shipbuilding, ship equipment, ship repair, offshore engineering, energy and transportation equipment.
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