MAINBOARD-LISTED Yangzijiang Shipbuilding is acquiring a 34 per cent stake in a wholly owned subsidiary of Japanese shipyard Tsuneishi Group for a consideration of 833.1 million yuan (S$158.3 million).
Announcing the joint venture agreement on Thursday (Sep 12), the Chinese shipbuilding group said that it will purchase the stake in Tsuneishi Group (Zhoushan) Shipbuilding through a private share allotment.
Tsuneishi Group, which was founded in 1903, is primarily in the shipbuilding business. Its business includes the construction of new ships, particularly bulk carriers, and it has the largest repair network in Japan.
Its Chinese subsidiary, Tsuneishi Group (Zhoushan) Shipbuilding, is headquartered in China’s Zhejiang province and focuses on building bulk carriers, container carriers, product tankers, and tugboats.
The consideration for the acquisition, which is based on a willing-seller, willing-buyer agreement, reflects Tsuneishi Group (Zhoushan) Shipbuilding’s audited net asset value of 2.5 billion yuan as at Dec 31, 2023. No external valuation was commissioned, said Yangzijiang in its press release on Thursday.
The consideration will be paid in cash and will be funded from Yangzijiang’s internal resources. Upon completion of the share allotment, Tsuneishi Group (Zhoushan) Shipbuilding will become an associated company of Yangzijiang.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The joint venture agreement is a “significant ” step in strengthening the relationship between both shipbuilding companies, said Yangzijiang.
“This new joint venture will bring together our strengths in research and development, shipbuilding, and supply chains. By combining our expertise, we’ll advance the latest shipbuilding technologies, enhance efficiency, and achieve great results together,” said Ren Letian, the executive chairman and chief executive officer of Yangzijiang.
The two companies have previously collaborated in various areas of shipbuilding through their joint venture in Jiangsu Yangzi-Mitsui Shipbuilding. Yangzijiang said that the latest joint venture is expected to further deepen their partnership.
SEE ALSO
