Singapore-listed Chinese shipbuilder Yangzijiang Shipbuilding continues to dispose of holdings in its non-core businesses, and invest in companies that have better synergies.
Yangzijiang has disposed of its entire 40% stake in Jiangsu Zhuoran Yangzijiang Energy Equipment, which is a steel fabrication business, for CNY12 million (USD2 million).
Yangzijiang said, “It’s in the best interest and commercial benefit to the group to dispose of the entire 40% equity interest as it would help to streamline the group’s structure to control overall administrative expenses.”
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Yangzijiang has also bought an additional 24% stake in Jiangsu New Yangzi Gas, for CNY12.6 million, believing this investment would boost its profit as the latter is a major gas supplier to Chinese shipyards. Prior to this, Yangzijiang had already taken a 51% stake in the company.
Yangzijiang’s 60%-owned subsidiary Barber-CS Marine Technology (Shanghai) has also acquired all of JJBC, a company that provides production design for merchant ships. JJBC has a paid-up capital of CNY300,000. Yangzijiang believes this investment will supplement its core business.
Finally, Yangzijiang has bought 20% of Nanjing Saining Equity Investment Enterprise, paying CNY20 million. The latter’s core business is tied to investments in big data to support the development of emerging industries.
This post was sourced from IHS Maritime 360: View the original article here.
