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CIMC buys smaller stake in Yantai Raffles Shipyard

CIMC buys smaller stake in Yantai Raffles Shipyard

Singapore: Sharp Vision, a subsidiary of China International Marine Containers, has completed the acquisition of a 10% stake in Singapore-based Yantai Raffles Shipyard Limited (YSRL) - 20% less than the 81.8m ordinary shares originally agreed upon.

"Although the percentage shareholding acquired by CIMC in this initial purchase is less than the 29.9% stake originally contemplated, the underlying fundamentals of the transaction remain unchanged," said YSRL chairman Brian Chang. "I am delighted with the outcome of this transaction which sees CIMC cement its strategic intent to diversify into the offshore marine industry through YRSL. With these negotiations concluded, we can now further build on realizing the expertise and synergies which CIMC can bring to YRSL to help us reach our common objective of being the best offshore marine yard in China, if not the world, within the next five years.

The transaction was conducted at NOK 16.25 ($2.4) for each of the 27.3m shares, with an estimated total cost of $65.5m.

CIMC president Mai Bo Liang, who has been nominated to the position of director on YRSL's Board has hinted at the possibility of additional share acquisitions. "This initial transaction reflects only the start of CIMC's long-term commitment to YRSL," he said. "Our positive outlook on the future of the offshore marine industry remains unchanged, despite these current turbulent times. We believe YRSL provides a very solid framework within which we can together, through mutual cooperation and a sharing of common objectives, grow YRSL into a world-class business."  [05/11/08]