Greater China

GSI settles restructuring

Guangzhou: Trading of shares in Guangzhou Shipbuilding International (GSI) resumed today on the Hong Kong and Shanghai Stock Exchanges. Meanwhile, more details have emerged on the yard’s planned acquisition of CSSC Huangpu Wenchong Shipbuilding.

GSI plans to purchase the entire issued share capital of Huangpu Wenchong at a consideration of RMB 4.527bn, of which 85% of which will be paid by means of share issuance, and 15% by means of cash payment.

The company also plans to purchase shipbuilding assets owned by Yangzhou Kejin for RMB 968m. This will be funded through a share issue, according to GSI’s restructuring proposal.

GSI has also proposed to raise up to RMB 1.831bn through a non-pubic issue of a maximum of 111,151,529 A shares for no more than 10 target subscribers. This will be used to support defense industry and ocean engineering projects at Huangpu Wenchong, the company says.

China State Shipbuilding Corporation (CSSC), GSI’s parent company, will increase its shareholding in GSI to 57.25% when the restructuring plan is complete.

GSI is CSSC’s only overseas capital operations platform, and will become the first company related to military industry to hold dual-listing status in Hong Kong and Shanghai.

Huangpu Wenchong is CSSC's primary base for defense ships, special engineering vessels and ocean engineering equipment in southern China, as well as the very leading manufacturing hub for dredging engineering vessels and feeder container ships.[3/11/14]



Guangzhou Shipyard to take over Huangpu Wenchong Shipbuilding

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