Bankrupt shipyard Sainty Marine has announced that it plans to issue 2.3bn new shares to raise RMB21bn ($3.2bn) for the acquisitions of a series of assets owned by its parent Jiangsu Guoxin Group.
The assets include 81.49% of shares in Jiangsu International Trust, 89.81% of shares in Xinhai Electric Power, 90% of shares in Guoxin Yangzhou Power, a 100% stake of Sheyang Port Power, 45% of shares in Yangzhou Second Power, 55% of shares in Guoxin Jingjiang Power, 95% of shares in Huaiyin Power and 51% of shares in Xielian Gas.
Sainty Marine also plans to raise another RMB6.6bn ($1.02bn) to increase the capital of Jiangsu International Trust and develop new power plant projects.
Upon completion of the deals, Jiangsu Guoxin Group will switch from an indirect controller to a direct controller of Sainty Marine, who said it hopes to improve the company’s operation status and profitability through the deals.
Nanjing Intermediate People’s Court recently held two auctions for the shipyard’s assets, both of which failed due to there being no bidders.