Mainboard-listed Yangzijiang Shipbuilding has entered into a joint venture agreement with Japanese conglomerate Tsuneishi Holdings to acquire a 34% equity stake in Tsuneishi Group (Zhoushan) Shipbuilding (TZS) through a private share allotment.
Currently, TZS is a wholly owned subsidiary of Tsuneishi Holdings with a paid-up capital of US$73.4 million ($95.8 million).
The acquisition has a purchase consideration set at RMB833.1 million ($152.7 million), based on a willing-seller, willing-buyer agreement.
The purchase consideration reflects TZS’s audited net asset value of RMB2.5 billion as at Dec 31, 2023. No external valuation was commissioned.
The consideration is set to be wholly satisfied in cash and will be funded from the group’s internal resources. Upon completion of the share allotment, TZS will become an associated company of Yangzijiang Shipbuilding.
In a Sept 12 bourse filing, the group says the joint venture agreement marks a “significant step” in strengthening the relationship between Yangzijiang Shipbuilding and TZS, through a shared commitment to sustainable growth and a focus on private-sector shipbuilding.
See also: Yangzijiang Shipbuilding reports record-high earnings of RMB3.06 bil for 1HFY2024, 77% higher y-o-y
Ren Letian, executive chairman and CEO of Yangzijiang Shipbuilding, says: “This new joint venture will bring together our strengths in research and development, shipbuilding, and supply chains. By combining our expertise, we’ll advance the latest shipbuilding technologies, enhance efficiency, and achieve great results together."
Shares in Yangzijiang Shipbuilding closed at 3 cents higher, or up 1.22%, at $2.48 on Sept 11.
