Guangzhou Shipyard international (GSI) of China State Shipbuilding Corp (CSSC) confirmed a takeover of sister yard CSSC Guangzhou Longxue.
GSI announced on June 24 that the company would issue H shares (Hong Kong stock) not opening to public and said that the raised money would not be exceeding CNY 2.5bn ($406m), which is planned to be used for the Longxue buyout and liquid financing of the listed company.
Particularly, its parent CSSC is said to buy more than 80% of this private equity issue.
The company said that the undertaking fund for Longxue buyout would cost around CNY 1bn.
Without exceeding CNY 1bn, GSI is to use the raised CNY 2.5bn for acquiring 60% stakes of Longxue and the other 40% owned by Longxue shareholders, however the company is still in talks over the 40% stakes with the shareholders.