Yangzijiang Shipbuilding to invest RMB 1 bil in new Jiangsu investment holding company
Yangzijiang Shipbuilding is investing RMB 1 billion ($204.5 million) through a wholly owned subsidiary into an investment holding company in Jiangsu, China.
Yangzijiang Shipbuilding said Jiangsu Yangzijiang Shipbuilding Co. (JYSCO) entered into an agreement with three other partners to set up the first non-state-owned investment holding company in Jiangsu with RMB 8.6 billion of registered paid-up capital.
JYSCO will subscribe to an 11.63% stake at RMB 1 billion in Jiangsu Non-state-owned Investment Holding Co (JNIHCO) in its capacity as a co-founder.
Three partners named in the disclosure to the Singapore Exchange (SGX) on Monday are state-owned enterprises Hodo Group, Shagang Group and GCL Group.
JNIHCO will leverage on the capital, resource and competitive advantages of Jiangsu non-state-owned enterprises to build up four major platforms. This includes building up an integrated financial services network by investment in financial institutions such as securities and insurance companies
The new setup seeks to establish a number of buyout funds and industrial investment funds, and collaborated with capital market to assist in the consolidation of traditional industries and growing industry, as well as to support the emerging industry, and participate in restructuring of state-owned enterprises
JNIHCO will also provide institutions and individuals with asset and wealth value enhancement services.
Finally, it will also “response actively” to the state call for “One Belt and One Road” and enterprises “going out” strategy, assist business entities to carry out international investment, overseas mergers and acquisitions to promote the upgrading and development of the industry.
Yangzijiang Shipbuilding closed 1.14% lower at 86.5 cents on Monday.