Guangzhou Shipyard eyes H-share sale, acquisition

Amid a tough environment for the shipbuilding industry, Guangzhou Shipyard plans to use part of the proceeds to buy another shipbuilder.
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A semi-submersible ship built by Guangzhou Shipyard
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<div style="text-align: left;"> A semi-submersible ship built by Guangzhou Shipyard </div>

Guangzhou Shipyard International, an integrated shipbuilding company that is listed both in Hong Kong and Shanghai, is considering a private placement of new H-shares and a possible acquisition of a shipbuilder that is majority-owned by its parent, China State Shipbuilding Corp CSSC.

The placement may raise up to Rmb2.5 billion $403 million, although the plan is for CSSC to subscribe to at least Rmb2 billion of that, it said in a filing to the Hong Kong stock exchange late Monday night.

The company’s share price fell 17.8% to HK$5.87 yesterday when the stock resumed trading after being suspended for more than a month. The...

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