Chinese EPC service provider Wison Engineering Services has entered into a cornerstone investment agreement to acquire new shares to be issued by CSSC (Hong Kong) Shipping, the shipowning and leasing unit of China State Shipbuilding Corporation.
The number of CSSC Shipping’s investor shares to be subscribed by Wison will be dependent on the offer price and Wison’s total investment on the shares will be no more than HK$234m ($29.8m).
CSSC Shipping applied for an IPO on the Hong Kong Stock Exchange in November last year and the company plans to use the proceeds to expand its ship leasing business and acquire upstream and downstream assets in the LNG sector to diversify its revenues.
Wison said it believes the investment is a good opportunity to extend the company’s business value chain by providing more integrated services to customers, and to reach out to more business partners by leveraging CSSC Shipping’s business network, which will bring mutual benefits strategically to both parties.
CSSC Shipping was established in 2012 and was the first shipowning unit set up by a Chinese shipyard. The company currently owns a fleet of around 60 ships.