Guangzhou Shipyard eyes sister company

SHANGHAI-LISTED Guangzhou Shipyard is looking to buy Wenchong Shipyard from its parent China State Shipbuilding Corp.

State-owned CSSC has put Wenchong Shipyard up for sale at Yuan3.04bn ($443m).

In a move towards financing the purchase, Guangzhou Shipyard has announced a placement of 148.4m shares to holders of its A and H shares. The shipyard would issue three new shares for every 10 existing shares.

The pricing of the issue has yet to be set. Guangzhou Shipyard said that the proceeds would go towards the acquisition of 100% of Wenchong Shipyard.

Wenchong Shipyard booked a net profit of Yuan625.61m last year. It builds feeder sized container vessels, bulk vessels and specialised vessels, while Guangzhou Shipyard specializes in tankers.