Shanghai-listed China Shipping Haisheng , a bulker operating subsidiary of China Shipping Group, announced on 11 June that it will raise CNY2 billion (USD322 million) through a private placement.
Around 291 million shares will be issued to 10 subscribers at the price of CNY6.85 per share, and all raised funds will be used to pay back the company‘s loans, according to its filling to the Shanghai Stock Exchange.
At the end of 2014, the company’s asset-liability ratio stood at 62%, with 0.17 current ratio and 0.14 quick ratio. Its debts increased from CNY3.67 billion in 2012 to CNY4.01 billion in 2014. The private placement is expected to cut the company’s debts and improve its repaying ability.
Once the deal is closed, Lanhai Investment and Lanhai Shangshou, subsidiaries of Shanghai Lanhai Group, will hold 42.82% shares of China Shipping Haisheng.
China Shipping Group inked an agreement on 5 June with compatriot Lanhai Shangshou to dispose of 14.11% stake of China Shipping Haisheng. The group will reap CNY1.03 billion from the deal, and Lanhai Shangshou will take over a total of 82 million shares in China Shipping Haisheng at CNY12.55 per share.
China Shipping Haisheng recorded a loss of CNY194 million for 2014, and Shanghai Lanhai Group agreed to help the Hainan-based firm with its business transformation.