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CSSC terminates technology unit restructuring

Shanghai-listed CSSC Science & Technology, a marine technology unit of China State Shipbuilding Corporation (CSSC), has terminated a restructuring deal to integrate another CSSC technology unit Haiying Enterprise along with a fund raising deal after the potential restructuring was rejected by the securities authority.

CSSC Science & Technology released the restructuring plan in August under which it planned to acquire Haiying Enterprise, a subsea ultrasonic equipment manufacturer, from CSSC Group and another CSSC unit for a total price of RMB2.11bn ($301m) as part of CSSC’s effort to restructure its technology business. The company also intended to issue new shares to specific investors to raise RMB1.12bn funds.

Earlier this week, China Securities Regulatory Commission (CSRC) rejected the deal due to major uncertainties relating to the future profitability of Haiying Enterprise.

Chinese state-run shipbuilders CSSC and CSIC are currently in the middle of a complex merger process involving eight listed companies. Both groups have started a series internal restructurings to pave way for the major merger deal.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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