CSIC Secures Massive Cash Injection from Investors

Shanghai-listed China Shipbuilding Industry Corporation (CSIC ) has signed a debt-for-equity swap agreement with eight state-backed investors worth up to RMB 21.9 billion (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 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

 

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2019 >>
MTWTFSS
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >

Nor-Shipping 2019

Nor-Shipping’s conference and event programme is tailored to deliver the knowledge, value and networking to help you build your business.

read more >

Electric & Hybrid Marine World Expo Conference 2019

Electric & Hybrid Marine World Expo Conference is the world’s only international conference…

read more >