Yangzijiang Shipbuilding has pocketed RMB140m ($22.7m) after it recently disposed of a 50% stake in shipbreaking yard Jiangsu Huayuan Metal Processing (JHMP), as part of an ongoing strategy to downsize its non-core assets.
Yangzijiang’s wholly-owned Jiangsu New Yangzi Shipbuilding and Baoling Investments had invested equity interests of 70% and 30% respectively in JHMP.
“In view of the weakening demand and increased costs in relation to higher requirement on environmental regulations, it is in the best interest of the company to dispose the 50% equity interest in JHMP at a consideration of RMB140m, whereby 20% disposal was through Jiangsu New Yangzi and 30% disposal was through Baoling,” Yangzijiang said.
After the disposal, Yangzijiang will through Jiangsu New Yangzi hold the remaining 50% equity interest in JHMP and the core business of the scrapyard will be changed to include steel cutting and processing, general cargo warehousing, and wholesaling of scrap steel.
“The disposal is in tandem with the Yangzijiang’s strategy to reposition its businesses activities,” the Chinese shipbuilder said.
Last month, Yangzijiang disposed of its entire 50% equity interest in non-core business Wujiang Jinke Yangzi Real Estate Development. It also sold its entire 100% stake in Jiangsu Leyuan Innovation International Trading.
Source: sea trade global. 14 August 2014http://www.seatrade-global.com/news/asia/yangzijiang-sells-50-stake-in-shipbreaking-yard.html