YZJ Financial falls 10% on placement of treasury shares at S$0.72 each

[SINGAPORE] Shares of Yangzijiang Financial, the financial arm of Yangzijiang shipbuilding, fell 10 per cent after the company on Sunday (Mar 30) said it agreed to divest its entire treasury shareholding of 193.5 million shares at S$0.72 apiece. 

At 9.43 am on Tuesday, the counter fell 10.1 per cent or S$0.08 to S$0.715, with around 52 million securities changing hands.

The share price later edged back up to S$0.735 at 10.06 am, still down 7.5 per cent or S$0.06, with around 62.8 million securities transacted, according to ShareInvestor.

The price represents a 111 per cent premium to its average buyback cost, but a 9.7 per cent discount to the weighted average price of S$0.7975 for trades done during the full market day on Mar 28.

The treasury shares were originally repurchased at an average cost of S$0.34 per share - less than half the S$0.72 placement price - under Yangzijiang Financial’s S$200 million share buyback programme.

The purchasers – Merlion Quay Capital and Operie Capital – are two separate entities, each established by an investor and three senior executives of Yangzijiang Financial.

SEE ALSO

Yangzijiang Financial places S$139.3 million in treasury shares for maritime investments 

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Net proceeds will be deployed towards the group’s core maritime investments, in line with its strategy to capitalise on industry tailwinds driven by increasing decarbonisation.