Yangzijiang acquires remaining 20% stake in Xinfu Yard | Singapore Business Review - The Latest News, Headlines, Insight, Commentary & Analysis

Yangzijiang acquires remaining 20% stake in Xinfu Yard

The transaction is set at S$136.88m and is fully funded by 100 million treasury sales.

Yangzijiang Shipbuilding (Holdings) Ltd. (Yangzijiang or the Group) signed a sale and purchase agreement with Sanfu Shipbuilding Holdings for the purchase of the remaining 20% equity stake in Jiangsu Yangzi Xinfu Shipbuilding Co., Ltd. (Xinfu Yard) for S$136.88m (RMB650m).

This will be fully funded by 100 million treasury shares (consideration shares) of the Group, Yangzijian said in a release on Wednesday.

With the transaction, Xinfu Yard, which is involved in shipbuilding, production, and processing of large-scale steel structures and is one of the Group’s major shipyards, will be a fully-owned subsidiary of Yangzijiang. All profits attributable to record shipbuilding orders placed with the Group will accrue to the Group’s bottom line.

Before the transaction, Yangzijian and its wholly-owned subsidiary, Jiangsu New Yangzin Shipbuilding Co., Ltd., owned 12.5% and 67.5%, respectively, of the issued share capital of Xinfu Yard, it said.

“The further acquisition signifies a huge investment in one of Yangzijiang’s key business units and in our existing major shipyard. The acquisition is also expected to be earnings accretive for the Group and is part of our continuous efforts to enhance long-term growth prospects and shareholder value,” Ren Letian, executive chairman and CEO of the group, said.

Yangzijiang said the transfer price for each consideration share of S$1.37 (RMB6.5) “represents a 0.63% premium to the volume-weighted average share price of S$1.3614 on 21 July 2021,” the full market day when the agreement was signed. 

Get Singapore Business Review - The Latest News, Headlines, Insight, Commentary & Analysis in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

This included one-off partial distribution of divestment gains of S$20m.
This is attributed to the lower rental reliefs to retail tenants at Festival Walk and higher average occupancy from IXINAL Monzen-nakacho Building.
The Tripartite Committee on Workplace Fairness targets to complete its work by H1 2022.
A total of 811 condos were sold in the last quarter, the highest since Q4 2010.
The SMAs are focused on global infrastructure projects.
The company said their income was driven by its latest acquisitions.
The Jobs Support Scheme has been extended to 18 August.
The bank is now allowing small- and medium-sized enterprises to avail the loan digitally.
And Health Ministry clarifies roadmap in treating COVID as endemic remains.
Inflation for all items meanwhile remained unchanged at 2.4% YoY.
SMEs that qualify for the UOB Start digital pack will be offered six months of free access.
This was supported by grants extended by the government, such as the Jobs Support Scheme.
The group’s profits after tax ballooned by as much as 138.4%.
It is comprised of a 10-, 20-, and 40-year USD Temasek Bonds.
This was linked to the higher average selling prices amidst rising coal prices.