Hudong to Invest in Shipyards and Tech

Hudong Heavy Machinery Co., said that it will use proceeds to fund its purchase of shipyards and to invest in new technologies. With the proceeds, Hudong will buy 100% of Shanghai Waigaoqiao Shipbuilding Co. and CSSC Chengxi Shipyards and 54% of Guangzhou Wenchong Shipyard. It will also invest in technology upgrades. The company, which is the biggest maker of diesel engines for ships in China, will sell up to 400 million A-shares at RMB 30 per share in exchange for RMB 9 billion in assets and RMB 3 billion in cash, it said in a statement to the Shanghai Stock Exchange Monday. Hudong’s controlling shareholder, China State Shipbuilding Corp., will buy 59% of the share issue. The other buyers include Baosteel Group Corp., China Life Insurance Co., Shanghai Electric Group Corp. and CITIC Group. Source: china knowledge