China Changjiang National Shipping (Group) Corporation (Changhang Group) plans to sell all its stake in Shanghai-listed Changhang Phoenix to Tianjin Shunhang Shipping for CNY1.0 billion (USD160.9 million) to fund its debt restructuring.
Changhang Group currently owns 17.89% of Changhang Phoenix, with Shunhang Shipping having no shares in the company, a stock filing of Changhang Phoenix said on 28 July.
After the deal is completed, Shunhang Shipping will be the biggest shareholder of Changhang Phoenix and its controller.
Shunhang Shipping is indirectly owned by a Chinese individual named Chen Deshun, who also owns Tianjin Ganghai Shipping.
According to IHS Sea-web.com, Shunhang Shipping currently does not own or operate any vessels, while Ganghai Shipping operates three handysize bulk carriers.
According to the agreement, after the share disposal is completed, Shunhang Shipping is required to inject the share capital of Tianjin Ganghai Construction into Changhang Phoenix by 31 May 2016, by which time Changhang Group will take over the current asset and business of Changhang Phoenix from Shunhang Shipping at no cost.
Ganghai Construction, which is involved in dredging and reclamation business in China, is a controlled subsidiary of Shunhang Shipping.
In May, Changhang Phoenix applied for the resumption of trading in its shares on the Shenzhen Stock Exchange after it reported profit for 2014 and positive equity as of the end of 2014. Trading in the shares was suspended on 26 December 2013.
This post was sourced from IHS Maritime 360: View the original article here.