Honghua Group offshore assets sale falls through

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 worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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