Shanghai Stock Exchange (SSE) has written to dry bulk shipping operator Ningbo Marine, requesting explanations on several issues regarding the company’s restructuring deal.
Ningbo Marine in March announced a major restructuring plan in which it will acquire all the shipping assets from its parent Zhejiang Energy Group.
SSE has noticed that the valuation price of Fuxing Shipping, a shipping unit of Zhejiang Energy Group, has increased by nearly 164.69% over a one month period. Considering the company’s financial data including operating revenue and profit that hasn’t significantly changed during the time, SSE has requested Ningbo Marine to provide the rationality of the hike in valuation price.
Additionally, SSE also questioned some of the financial results of Ningbo Jianghai Transportation, another shipping unit of Zhejiang Energy Shipping.
Ningbo Marine must reply to SSE by a deadline of May 11.
Ningbo Marine started a similar restructuring move in 2016 but the plan was eventually rejected by the China Securities Regulatory Commission, which claimed the restructuring violated back-door listing rules.
Ningbo Marine currently operates a fleet of 26 bulk carriers, and it also has three 1,000 teu feedermax boxships under construction at Taizhou Kouan Shipbuilding.