Guangzhou Shipyard International, image via Zoepffel & Schneider
By Clement Tan
Nov. 3 (Bloomberg) — Guangzhou Shipyard International Co., a unit of China’s biggest shipyard, surged 72 percent on its first day of trading in seven months after announcing about 5.5 billion yuan ($900 million) of acquisitions.
The stock jumped the most on record in Hong Kong after the company said it plans to buy CSSC Huangpu Wenchong Shipbuilding Co. for 4.5 billion yuan. Guangzhou Shipyard said it would also purchase shipbuilding assets from Yangzhou Kejin Shipyard Co. for 968 million yuan.
The shipyard soared as much as 94 percent earlier after the stock resumed trading following a suspension on the Hong Kong and Shanghai exchanges April 4, pending restructuring announcements. China is revamping its shipbuilding industry that has been saddled with debt and overcapacity with some private vessel builders seeking state financial assistance.
Guangzhou Shipyard climbed to HK$23.65 at the close in Hong Kong trading, while rising 9.9 percent in Shanghai.
Guangzhou Shipyard plans to issue 272 million shares to buy Huangpu Wenchong from their mutual parent, state-owned China State Shipbuilding Corp., the Guangzhou-based company said in a stock exchange filing Oct. 31. It will fund the remainder with 679 million yuan in cash.
The purchase of Huangpu Wenchong will help “deepen reform of military enterprises” since the company builds military vessels, Guangzhou Shipyard said. China State Shipbuilding is China’s largest shipyard.
Copyright 2014 Bloomberg.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 108,938 members that receive our newsletter.
Have a news tip? Let us know.
WASHINGTON, Jan 30 (Reuters) – When Marco Rubio arrives in Latin America this weekend on his first foreign trip as Donald Trump’s secretary of state, he’ll find a region reeling from the new administration’s...
US President Donald Trump has raised the stakes for a meeting of an OPEC+ ministerial panel next month, with his call for the group to lower oil prices.
Vessels in the northern Gulf have received multiple VHF radio challenges, including demands to alter course, the United Kingdom Maritime Trade Operations said on Friday, adding they could be part of an Iranian military exercise.
Maritime and offshore news trusted by our 108,938 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
