River Cargo Transport News
- Guangzhou Shipyard denies privatization report
Date: 25-Sep-2007 Sources: (Shenzhen Daily)
GUANGZHOU Shipyard International Co. yesterday denied a media report that its parent is planning to take the Hong Kong and Shanghai-listed shipbuilder private.
In a statement, Guangzhou Shipyard said its parent, China State Shipbuilding Corp. (CSSC), the world's third-largest shipbuilder, had no plans to buy out minority shareholders at the company.
The statement was issued in response to a local media report Sept. 20 that CSSC was planning to further restructure its listed units to boost efficiency, with measures including a privatization of Guangzhou Shipyard.
Shares of Guangzhou Shipyard have surged 49 percent in Shanghai and 23 percent in Hong Kong over the past three months.
Early this year, CSSC injected assets worth 12 billion yuan (US$1.60 billion) into Shanghai-listed ship engine maker Hudong Heavy Machinery Co. and renamed the latter China State Shipbuilding.
CSSC, which builds naval and civilian ships, is the world's No.3 builder of ocean-going vessels by capacity, behind Hyundai Heavy Industries Co. and Japan's Imabari Shipbuilding Co., according to shipbrokers Clarkson Plc.
Another CSSC unit, Jiangnan Heavy Industry, said yesterday its Shanghai-listed A shares would be suspended from trade pending an announcement. The company denied last week that it was soon to be restructured by its parent.
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