CIMC buys $566m stake in Yantai Raffles

Singapore: Brian Chang, chairman of Yantai Raffles Shipyard Limited (YRSL) has signed an agreement to sell approximately 29.9% of YRSL's issued share capital (81.8m shares) to China International Marine Containers (Group). The deal, valued at $566m, is slated for completion in 3Q, 2008 and is conditional upon CIMC obtaining necessary PRC governmental approvals.

Chang, who will retain a 14.3% total interest (direct and indirect) in YRSL and intends to remain active at the yard till al least 2012, said, "My vision has been, and continues to be, for YRSL to be the Yard of Choice for the construction of large offshore marine vessels - that is, to be the number one yard in the world. We have made excellent progress in developing the yard's infrastructure over the past few years, and we are now paying close attention to securing increased production capacity, and strengthening our engineering and manufacturing capabilities to be best-in-class worldwide.
 
"Together with CIMC, we have already identified several key areas where YRSL could expect to benefit significantly from CIMC's deep expertise, enhancing shareholder value for all our shareholders. These areas include procurement, outsourcing, advanced manufacturing processes and broadening the opportunities for domestic sales."  [13/03/08]