| Yangzijiang dismisses M&A rumours |
| Singapore-listed shipbuilder Yangzijiang Shipbuilding Holdings dismissed rumours on the acquisition of shipbuilder China Rongsheng Heavy Industries Group Holdings (RSHI). Yangzijiang stated in its filing to the Singapore Exchange that the management of the company has “not made any decision regarding the acquisition”, refuting previous media reports that the company is in “advance talks” to acquire stakes in RSHI. However, Yangzijiang clarified in the filing that the company was approached by relevant government agencies in China to consider and explore the possibilities of acquiring some stake in the said company. Still, as to date, Yangzijiang has taken no action and decision for the suggested acquisition, and the management will continue to evaluate the implication of any potential acquisition to the overall businesses of the company. Since its inclusion to the “white list” of 51 Chinese shipyards in September 2014, Yangzijiang has been in the limelight of much possible merger and acquisition (M&A) activities, thanks to the favourable Chinese government's support policy like export tax rebates and bank credit. RSHI was also included in the “white list”, but was not in a healthy financial position. For instance, the yard posted a total net loss of CNY3.36 billion (USD537 million) for the first nine months in 2014, due to the low prices of shipbuilding orders in the depressed market. RSHI then had been subjected to several lawsuits filed over contract disputes and had its assets frequently seized by Chinese courts upon application by its creditors in 2014. |