China State Shipbuilding Corporation (CSSC), one of two state-run shipbuilding conglomerates in China, have brought in strategic investors for four subsidiary yards as part of its efforts to lower the debt ratio of the group.
According to CSSC, eight investors will replenish a total of RMB5.4bn ($845m) into Waigaoqiao Shipbuilding and CSSC Chengxi Shipyard, while nine investors will invest a total of RMB4.8bn into Guangzhou Shipyard International and Huangpu Wenchong Shpbuilding.
Upon completion of the deals, CSSC remains the controlling shareholders of the shipyards.
CSSC believes the debt-to-equity swap will effectively lower the group’s asset-liability ratio, which is in line with the central government’s restructuring policies for state-run companies.
CSIC went though similar measures with its subsidiary yards, having brought in strategic investors for Dalian Shipbuilding Industry and Wuchang Shipbuilding Industry in August last year.