CSSC Offshore & Marine Engineering to bring in strategic investors

 

 

CSSC Offshore & Marine Engineering, a subsidiary yard of China State Shipbuilding Corporation, has announced a plan to bring third party investors in an effort to lower its debt ratio.

 

According to the plan, the potential investors will invest up to RMB5.53bn in total into Guangzhou Shipyard International and Huangpu Wenchong Shipbuilding, two subsidiary yards of CSSC Offshore & Marine Engineering. Official investment agreements are expected to be signed soon.

 

CSSC said the investment into the subsidiary yards will lower the company's asset-liability ratio and financial risk while optimize the company's capital structure.

 

The debt restructuring move by CSSC is likely aimed at paving the way for a long speculated merger between the CSSC and CSIC. The other state-run shipbuilding conglomerate China Shipbuilding Industry Corporation (CSIC) recently completed a similar debt restructuring plan of bringing strategic investors into two subsidiary yards Dalian Shipbuilding Industry and Wuchang Shipbuilding Industry.