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GSI continue to suspend trading on HK and Shanghai bourses pending asset restructuring
GUANGZHOU Shipyard International (GSI), the subsidiary of state-owned China State Shipbuilding Corp (CSSC), announced that it will continue to suspend trading in its Shanghai- and Hong Kong-listed stock until September 14 amid ongoing preparations for an asset restructuring announced in May.
As part of the restructuring, GSI explained in a filing to the exchange, CSSC "plans to inject its assets related to its shipbuilding business in Southern China into the company and the company intends to acquire shipbuilding assets from third parties."
GSI said that the assets to be injected by the parent "include certain core military assets," which require consultation with various state authorities, contributing to delays. As for the third party assets, GSI did not specify, but said that it was "negotiating with the counterparties relating to the third party assets and striving to finalise" the acquisition as soon as possible, the UK's Lloyd's List reported.
In mid-March this year, GSI completed the purchase of the whole of Longxue Shipbuilding from CSSC, Baosteel and China Shipping Group. It consolidated Longxue's results into its own for the first time for the quarter ended March this year.
While making losses during 2012 and the first half of 2013, Longxue is expected to enhance GSI's ability to win orders to build very large ore carriers, capesize bulkers and other large-sized vessels in the long run.
GSI reported a net loss of CNY113.9 million (US$18.2 million) for first quarter, compared to the year-ago loss of CNY15.7 million.
As part of the restructuring, GSI explained in a filing to the exchange, CSSC "plans to inject its assets related to its shipbuilding business in Southern China into the company and the company intends to acquire shipbuilding assets from third parties."
GSI said that the assets to be injected by the parent "include certain core military assets," which require consultation with various state authorities, contributing to delays. As for the third party assets, GSI did not specify, but said that it was "negotiating with the counterparties relating to the third party assets and striving to finalise" the acquisition as soon as possible, the UK's Lloyd's List reported.
In mid-March this year, GSI completed the purchase of the whole of Longxue Shipbuilding from CSSC, Baosteel and China Shipping Group. It consolidated Longxue's results into its own for the first time for the quarter ended March this year.
While making losses during 2012 and the first half of 2013, Longxue is expected to enhance GSI's ability to win orders to build very large ore carriers, capesize bulkers and other large-sized vessels in the long run.
GSI reported a net loss of CNY113.9 million (US$18.2 million) for first quarter, compared to the year-ago loss of CNY15.7 million.
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