Fengfan Stock Limited (Fengfan), the listed branch of China Shipbuilding Industry Corporation (CSIC), has announced it will purchase assets owned by CSIC’s power businesses for CNY14.4 billion (USD2.3 billion).
The company will issue 772 million shares at CNY17.79 each to CSIC Group, CSIC Investment, Fengfan Group, as well as CISC’s five research institutes, to buy their assets valued at CNY13.88 billion and pay CSIC group CNY543 million in cash to buy 100% equity of Torch Battery.
Once the deal is completed, Fengfan will become CSIC’s only power business facility.
The reorganisation of Fengfan is considered to be the beginning of CSIC’s internal asset restructuring, a securities analyst told IHS Maritime.
CSIC’s senior executives said that the group will push for the securitisation of its military assets as required by the central government.
At present, only 40% of CSIC Group’s assets are listed, and its 28 research institutes contribute 30% of the Group profit.