COSCO remains uncertain on securities prices amidst shipyard restructuring
A new company, COSCO Shipping Heavy Industry Co., Ltd, has been established by China COSCO Shipping Corporation group as it proceeds with the restructuring of its shipyard business, according to a media release at the SGX.
China COSCO Shipping Corporation said that the shipyard business restructuring is geared towards centralising operations and management of the shipyard businesses of the China COSCO Shipping Corporation group. The company has not yet disclosed the details of the restructuring, as various possibilities are still under consideration.
China COSCO Shipping Corporation admits that there will exist significant uncertainty as to the price of the company’s securities, but assures that the restructuring plans will soon be finalised and COSCO will be notified in a month.
COSCO says that it will not be appropriate for trading in the Company’s securities to continue, until the Company is notified by China COSCO Shipping Corporation Ltd of its finalised plans in relation to the proposed restructuring. The company will also make a request to the Singapore Exchange Securities Trading Limited to transform the trading halt that came into effect on 19 December 2016 into a trading suspension. The Company will make announcements of any significant development in this matter at the appropriate junctures.
Source: Singapore Business Review