CIMC Enric, an affiliate company of China International Marine Containers (CIMC), has announced that it has terminated the acquisitions of Sinopacific Offshore & Engineering, the offshore unit of Sinopacific Shipbuilding.
CIMC Enric signed MOUs with the shareholders of Sinopacific Offshore to take over the yard in August 2015.
The company said certain conditions of the acquisition agreements cannot be fulfilled and it also considered that the sellers had breached certain material terms in the agreements, including that the net asset value of Sinopacific Offshore before completion of the acquisition was found to differ substantially from the net asset value as of May 31, 2015.
“After due and careful consideration and after consulting with our legal advisers, the board decided not to proceed with the acquisitions,” CIMC Enric said in an announcement.
CIMC Enric has requested Sinopacific Shipbuilding and its parent group Evergreen Holding Group to refund RMB179m ($27.2m) in pre-payments and relevant interest.
In the meantime, CIMC Enric also terminated a financial assistance framework agreement with Sinopacific Shipbuilding and Evergreen Holding, in which it agreed to provide RMB1.5bn ($228m) financial assistance to Sinopacific Offshore.
Sinopacific Shipbuilding is currently dealing with a financial crisis, and closed its Shanghai operations earlier this year. Its parent group Evergreen Holding, also defaulted on bond payments recently.
