Shanghai Bestway Marine & Energy Technology has announced that controlling shareholder Liu Nan has entered into a letter of intent with state-run Yangzhong Financial Holding Group to sell a 17.81% stake of the company.
Following the completion of the deal, Yangzhong Financial Holding will become the controlling shareholder of Shanghai Bestway, and Liu’s shareholding in the company will be reduced to around 1%.
Shenzhen-listed Shanghai Bestway mainly offers ship design service and operates a shipbuilding and marine equipment construction business through its subsidiary yard Dajin Heavy Industry.
Shanghai Bestway reported a net profit of RMB6.5m ($1m) for the first quarter of 2018, down 72.66% year-on-year. The company said its shipbuilding and offshore businesses are facing severe challenges due to the overall downturn in the international market and the company is making efforts to diversify its business in order to minimise risk.
Since 2018, the company’s share value has shrunk by nearly 30%.
Last month, Li Lu, the second largest shareholder of Shanghai Bestway, announced that he would sell around 2.44% stake in the company in the next six months.