Shanghai-listed Fengfan Limited, a CSIC-affiliated storage battery producer, has announced that it plans to issue RMB13.9bn ($2.16bn) worth of new shares to its parent China Shipbuilding Industry Corporation (CSIC) to acquire stakes in a series of propulsion related companies.
Fengfan will acquire full equity in Guanghan Power, Shanghai CSIC Marine Propulsion Equipment, Micro Powers, Changhai Electric Propulsion, Yichang Marine Diesel Engine, Henan Diesel Engine Industry, Wuhan Haiwang Nuclear Technology, 90% equity in Wuhan Marine Machinery Plant and 28.47% equity in CSIC Special Equipment Company. It will also acquire Zibo Torch Energy through a RMB543m ($85.2m) cash payment.
Upon completion of the restructuring, Fengfan Limited will become the integrated propulsion platform of CSIC.
Fengfan Limited is mainly engaged in the research, development, manufacturing and distribution of lead-acid batteries and power solutions. It occupies more than 25% domestic market share in the sector.