[SINGAPORE] Yangzijiang Financial Holding is exploring the possibility of spinning off its maritime investments segment into a newly incorporated company to be listed separately on the mainboard of the Singapore Exchange.
The group said on Sunday (Apr 27) that the proposed transaction would involve transferring its maritime investment assets into a new entity (spin-off group) to be listed by way of introduction.
The plan is to establish the spin-off group as a pure-play maritime fund manager, with the remaining group (legacy group) continuing its focus on funds, diversified asset management capabilities, and investment operations.
Yangzijiang Financial’s executive chairman and chief executive officer Ren Yuanlin is set to lead the spin-off group.
“This is a natural evolution of our strategy. Our maritime business is ready to stand on its own, backed by strong fundamentals and a clear vision for expansion,” explained Ren. “By separating our maritime segment from Yangzijiang Financial’s investment platform, we will be better positioned to pursue focused growth while delivering enhanced value to shareholders.”
In sum, the proposed spin-off and listing will create “two separate listed company groups to pursue more targeted business strategies and accelerate growth”, Yangzijiang Financial said. The exercise will allow for more efficient capital allocation, tailored to the differing strategies of each business.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Yangzijiang Financial informed that it has not formally consulted the Singapore Exchange Securities Trading Ltd (SGX-ST) on the proposed spin-off and listing, and no definitive decision has been made.
Completion is targeted within six to 12 months.
The group will be appointing SAC Capital as financial adviser and issue manager for the proposed spin-off and listing.
Elaborating on its plans, Yangzijiang Financial noted: “The spin-off group will function as a dedicated maritime investment platform, focusing on unlocking value across the entire maritime value chain. From finance leasing and brokerage services to broader investment participation, the spin-off group aims to capitalise on its expertise in both shipbuilding and investment to proactively capture high-growth opportunities in the maritime industry, thereby generating sustainable long-term value for its shareholders.”
The legacy group will continue its focus on funds, diversified asset management capabilities, and investment operations. Yangzijiang Financial added: “Leveraging Singapore as a strategic hub, the entity is well-positioned to capture growth opportunities in South-east Asia’s emerging investment landscape.”
Operationally, each company group will benefit from greater agility, streamlined decision-making, and clearer governance. Both will be better equipped to pursue sector-specific partnerships, co-investments, and capital-raising initiatives, Yangzijiang Financial added.
The counter ended S$0.01 higher at S$0.70 on Friday.
