Photo Of Drillship Deep Ocean Clarion under Construction At Samsung Heavy Industries by John Konrad ©2010
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.
© 2016 Thomson Reuters. All rights reserved.
Updated: August 23, 2016 (Originally published August 19, 2016)
This article contains reporting from Reuters, published under license.
Sign up for gCaptain’s newsletter and never miss an update
Essential maritime and offshore news, insights, and updates delivered daily straight to your inbox
The global shipping order book has climbed to its highest level in nearly two decades, as a wave of tanker contracting and sustained newbuilding demand across the 2020s continues to...
The U.S. shipbuilding crisis broke into the national spotlight this week as 60 Minutes took a closer look at the growing gap between American shipyards and their Asian rivals—something maritime industry insiders...
Blue Water Autonomy unveiled the Liberty Class, a privately funded 190-foot autonomous surface vessel designed for serial production as the U.S. Navy looks to expand fleet capacity.
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
