Guangzhou Shipyard to take control of Huangpu Wenchong Shipbuilding

Guangzhou Shipyard International (GSI) is planning to take control of its sister firm Huangpu Wenchong Shipbuilding Company, according to China State Shipbuilding Corporation (CSSC), the parent company of the two shipyards.

CSSC said it is planning to inject the 100% equity interest in Huangpu Wenchong into GSI as part of a “significant assets restructuring” of GSI.

Hong Kong-listed GSI’s shares have been suspended from trading since 8 April this year and it is unlikely for the shares of the company to resume trading by 15 October, GSI announced.

“Currently, the parties involved in restructuring are preparing the relevant documents in relation to the restructuring plan,” GSI stated.

In late September, GSI announced that it has agreed to dispose of non-core assets such as the Hunan Hengyang Shop, Hongfan Hotel, Guangzhou Jinzhou and Guangzhou Shipyard Industrial.

GSI has been struggling to achieve financial stability as it posted a first half 2014 loss of RMB271.12m ($44.12m), widening from a deficit of RMB42.44m in the previous corresponding period.
Source: Seatrade Global