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>

<< Aug 2018 >>
MTWTFSS
30 31 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

TRANSTEC 2018

TRANSTEC 2018 welcomes participants to explore Russian Ports and Shipping development opportunities…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

SMM 2018

This is a must-attend event – a unique opportunity to meet key players, display business strengths, establish new contacts and exchange…

read more >

Defence Safety Conference Supported by The Defence Safety Authority, UK MoD

The Defence Safety Conference is the first of its kind exclusively dedicated to safety across the defence domain…

read more >