Sinotrans&CSC plans to raise at least CNY1 billion (USD161 million) by selling all its shareholdings in Changhang Phoenix in a public tender.
The selling price is set at minimum CNY5.53 per share, a stock filing of Changhang Phoenix said on 2 July.
Sinotrans&CSC currently owns 17.89% of Changhang Phoenix through China Changjiang National Shipping (Group) Corporation, which is a subsidiary of Sinotrans&CSC.
The potential buyer of the shares is required to promise that it would complete an asset restructuring of Changhang Phoenix by 30 June 2016, when Sinotrans&CSC buys back the asset and business of Changhang Phoenix.
Changhang Phoenix, a bulk carrier operating unit of Sinotrans&CSC, predicted in April that it would remain in the black for the first half of 2015 as it seeks to resume trading in the company‘s shares on the Shenzhen Stock Exchange.
In May, Changhang Phoenix applied for 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.
In 2014, its profit totalled CNY4.3 billion as the company had completed its restructuring to reap CNY4.2 billion in restructuring proceeds.
Also, the restructuring helped waive the company’s huge debts and related interest payment.
According to Chinese security regulations, trading in the shares of Changhang Phoenix will resume on the Shenzhen Stock Exchange after it reports full-year profits and positive net equity for 2014. Trading in the shares were suspended on 26 December 2013 as it began to prepare for restructuring.
This post was sourced from IHS Maritime 360: View the original article here.
