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CSIC Secures Massive Cash Injection from Investors

The shares to be sold relate to CSIC’s two subsidiaries, Dalian Shipbuilding Industry (DSIC) and Wuchang Shipbuilding Industry (WSIC), which have sustained a massive blow from the downturn of the offshore energy sector.

As disclosed, state-owned China Cinda Asset Management and China Orient Assets Management will provide RMB  7 billion in a debt-for-equity deal with DSIC and WSIG.

The other six investors, which include China State-owned Capital VC Fund, China Structural Reform Fund Corporation, China Merchant Pingan Asset Management, China Life, Huabao Trust and Guohua Military- Civilian Integration Development Fund, will provide the yards with RMB 14.8 billion in exchange for an equity stake.

Following the completion of the deal, CSIC will reduce its ownership in DSIC to 57% and in WSIG to 63.9%.

DSIC and WSIG will, on the other hand, receive RMB 16.5 billion and RMB 5.4 billion respectively.

CSIC said the move was in line with its plan to deleverage, improve capital structure and the government’s supply-end reform.

The capital increase is subject to approval by the company’s shareholders.

World Maritime News Staff

 

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