CSIC About to Seal Restructuring Deal

Image Courtesy: CSIC

China Shipbuilding Industry Corporation (CSIC), which suspended trading of its stock back in May due to a “major asset restructuring”, is scheduled to sign an agreement with an unnamed party on the matter next week.

CSIC revealed in a regulatory filing that it is expected to sign a deal on the company’s reorganization on September 15.

Further details on the reorganization are yet to be revealed.

As the major asset restructuring plan is yet prone to “large uncertainties”, the company said it would resume trading suspension until further notice.

In August Shanghai-listed CSIC signed a debt-for-equity swap agreement with eight state-backed investors worth up to USD 3.28 billion.

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

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 and improve capital structure as it battles to emerge from the doldrums the sector has been faced with over the past couple of years.

World Maritime News Staff

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