China Shipbuilding to speed up restructuring project

China Shipbuilding Industry Corp yesterday announced that it will speed up the restructuring project as it already accepted a plan with more than RMB 17.3 billion worth of capital assets injection from seven shareholders through private placement. The company intends to issue 2.5 billion shares for RMB 6.93 apiece to its seven shareholders, including China CSSC Holdings Ltd(600150), China Construction Bank Corp(601939)(0939) and Dalian Shipbuilding, to acquire several assets and manufacturing subsidiaries from latter firms, most of the target assets are involved in shipbuilding heavy industry.
However, one of the target assets, Bohai Shipbuilding Heavy Industry Co Ltd, formerly known as Bohai Shipyard, suffered net loss of RMB 9.14 million in 2008, RMB 370 million in 2008 and RMB 30.78 million in the first four months of this year.
Analyst said that the Shanghai-listed firm is preparing for group listing of its civil ship business.
Reportedly, China Shipbuilding Industry, which reaped RMB 1.49 billion in net profit and RMB 18.6 billion in operation revenue last year, forecasted that its net profit will hit nearly RMB 2.7 billion in 2010.