China Securities Regulatory Commission (CSRC) has given approval to a major internal restructuring deal of CSSC, paving way for the merger of state-owned shipbuilding conglomerates CSSC and CSIC.
Under the deal, CSSC will acquire 100% stake of Jiangnan Shipyard, 36.27% stake of Waigaoqiao Shipbuilding and 21.46% stake of Chengxi Shipyard from a group of companies including its parent China State Shipbuilding Group. The total value of the transactions is RMB37.36bn ($5.41bn).
CSSC will also issue new shares to up to ten specified institutional investors to raise RMB3.86bn to fund the acquisitions.
In October, China’s State Coucil had officially given approval to the merger between China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC), after the two shipbuilders confirmed a plan for a long expected merger in July.
The new shipbuilding super group will retain the brand name of China State Shipbuilding Corporation and control nine listed companies with combined assets worth over RMB800bn ($112bn).
In December, CSSC terminated the restructuring of its technology unit after the potential deal was rejected by CSRC.