Greater ChinaOffshore

Honghua Group offshore assets sale falls through

Chinese oil and gas equipment manufacturer Honghua Group has announced that the company’s potential deal with Jiangsu Honghai Energy Equipment to sell its entire offshore assets has been terminated due to financing difficulties for the buyer.

Honghua Group listed its entire offshore business for sale last year amid the uncertain outlook in the offshore market and planned to switch its business focus to the LNG sector.

Honghua listed the offshore assets for sale again for a nominal price of RMB1 due to the company’s negative net asset value. The buyer is required to acquire around RMB1.96bn ($285m) liabilities of the company’s offshore business as part of the deal.

Honghua hopes the sale of offshore business would help balance the short-term and long-term interest of the company and its sharehodlers and improve the group’s capital structure, resource allocation and financial performance.

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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