U.S. Navy’s First John Lewis-Class Oiler Launched at NASSCO
The first ship in the U.S. Navy’s new class of fleet replenishment oilers has been launched at General Dynamics NASSCO in San Diego. The John Lewis-class oilers will provide underway...
By Joyce Lee (Reuters) South Korea’s Samsung Heavy Industries Co Ltd said on Friday its board of directors have approved a plan to raise about 1.1 trillion won ($985.22 million) via a rights issue as the shipbuilder struggles to cope with a prolonged downturn.
Samsung Heavy, part of the Samsung Group conglomerate, has been planning to sell share as it copes with deep losses stemming from a drop in orders for new vessels. The government expects a 20 percent drop in major shipbuilders’ capacity by 2018 from 2015.
The company said in a regulatory filing it plans to issue 159.1 million new shares at 6,920 won each, a 30 percent discount to Thursday’s closing price of 9,890 won, with the new shares to be listed on Nov. 28.
“We decided to pursue a rights issue in order to respond proactively to uncertain market conditions and secure funding for the company’s operations in a stable manner,” Samsung Heavy Chief Executive Park Dae-young said in a separate statement.
Samsung Heavy, Hyundai Heavy Industries Co Ltd and Daewoo Shipbuilding & Marine Engineering Co Ltd – the world’s biggest shipbuilders by orders, and all based in South Korea – this year announced plans to sell up to 4.8 trillion won in combined assets and find 3.6 trillion won through cost cuts.
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