Zhenhua acquires offshore assets of Daoda

Shanghai: Zhenhua Heavy Industry is to raise RMB203m in cash to purchase more assets of troubled Daoda Maritime Heavy Industry to further expand Zhenhua’s diversification into the offshore engineering market.

According to the company, when the deal is completed, Zhenhua will hold 67% of the shares of Daoda, which is in line with the company’s plan to integrate its shipbuilding resources and up its offshore engineering portfolio.

With shipbuilding still in the doldrums, Zhenhua said it was able to take over Daoda at a reasonable price, thus strengthening its offshore presence and diversifying its revenue base. [07/02/14]

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