On July 21, Yangzijiang announced that it had entered into a sale and purchase agreement (SPA) with Sanfu Shipbuilding Holdings. The SPA will see Yangzijiang purchasing the remaining 20 per cent equity stake in Jiangsu Yangzi Xinfu Shipbuilding, for an aggregate consideration of 650 million yuan, fully funded by 100 million treasury shares of Yangzijiang.

 

The transfer price for each consideration share is 6.5 yuan, equivalent to approximately S$1.37. This represents a 0.63 per cent premium to the volume-weighted average share price on July 21.

 

Yangzijiang executive chairman and CEO of the group Ren Letian noted that the acquisition signifies a huge investment in one of Yangzijiang' s key business units and in its existing major shipyard.

 

Expecting to be earnings accretive for the group, Mr Ren added that the acquisition is part of the group' s continuous efforts to enhance long-term growth prospects and shareholder value.

 

Mr Ren maintains a 4.31 per cent deemed interest in Yangzijiang Shipbuilding.

 

In the first half of its FY21 (ended June 30) the group secured new orders for 100 vessels worth US$5.59 billion, surpassing the previous record largest order wins (based on total contract value) for a fiscal year in the group' s history (previously set at US$4.97 billion in FY07).