State-run commodity trader Zheshang Development has announced a restructuring plan to take over bulk shipping operator Zhejiang Shipping Group.
Under the plan, Zheshang Development will acquire 100% equity shares in Zhejiang Shipping Group through the issuing of new shares to the current controlling shareholder Zhejiang Communications Investment Group.
Additionally, Zheshang Development will bring in investment firm Zhejiang Yongan Guofu as a strategic investor to raise up to RMB500m ($70m).
The raised funds will be used for the development project for Zhejiang Shipping.
Last week, Zhejiang Shipping issued an tender seeking shipyards to construct two 51,000 dwt bulk carriers. It currently owns a fleet of 24 bulk carriers with total capacity of 1.05m dwt.