Hot stock: YZJ up 1.4% after proposed unit spin-off gets nod from SGX-ST

SHARES of Yangzijiang Shipbuilding (YZJ Shipbuilding) rose on Thursday (Mar 10) morning, being one of the most active counters by volume in early trade.

As at 9.32 am, the index stock hit S$1.44, up S$0.02 or 1.4 per cent, after some 8 million securities changed hands. It later eased to trade flat at S$1.42 with about 12.5 million shares transacted as at 10.04 am.

No married deals took place in early trade, according to ShareInvestor data.

After the market closed on Wednesday, the group announced it had received clearance from the Singapore Exchange Securities Trading (SGX-ST) on its proposed spin-off and subsequent listing of YZJ Shipbuilding's investment segment as Yangzijiang Financial Holdings (YZJFH).

This will take place via the transfer of existing investments to a newly incorporated company that will focus on asset management and direct investments.

The transaction remains subject to shareholder approval at an extraordinary general meeting to be convened, as well as the eligibility-to-list in respect of YZJFH shares on the SGX-ST.

YZJ Shipbuilding first revealed plans in November 2021 to create 2 separate listed companies to pursue more targeted business strategies and accelerate growth.

It had targeted for the proposed spin-off and listing of YZJFH to be completed in 6 to 12 months from November 2021.

The new spin-off company is expected to realign YZJ Shipbuilding's existing investment portfolios towards more growth-oriented investments, expanding its global footprint and growing the fee-income business - ultimately diversifying from the current single industry, country and asset portfolio.

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