Substantial equity transfer in Yangzjiang
A SUBSTANTIAL shareholder of Chinese shipbuilding group, Yangzijiang Shipbuilding (YZJ) has transferred shares representing a significant percentage of its capital as a gift to a trust in which the company's executive chairman owns an indirect interest.
Newyard Worldwide Holdings has notified YZJ of a gifting arrangement involving over 1 billion shares at nil consideration to Yangzi International Holdings (YIH), which is 100 per cent owned by YZJ Settlement Julius Baer Trust Company, the Chinese shipbuilding group said in an SGX disclosure released after trading hours.
YZJ's executive chairman, Ren Yuanlin, is the sole owner of Newyard. The gift shares represent about 26.17 per cent of the total number of issued and paid-up share capital of YZJ.
The gifting arrangement does not result in a dilution for existing YZJ shareholders, given there is no change on the total number of shares issued, the SGX announcement said.
The gifting arrangement is out of goodwill by Mr Ren to serve the purposes of YZJ Trust. These are: to enhance YZJ's research and development strength, overall shipbuilding capabilities and competitiveness in the global market; direct or indirect investments in the consolidation or restructuring of the global shipbuilding industry; and strengthen YZJ's brand equity as a socially responsible entity by supporting charities with focuses on elderly well-being.
YIH is wholly-owned by the YZJ trust in which Mr Ren has deemed interest
The board of YZJ expects the gifting arrangement will have no impact on the shipbuilding group's financial statements for the financial year ending Dec 31 2016.
Shares in YZJ closed flat at S$1.02.
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