Yangzijiang Shipbuilding said on Friday that its wholly owned subsidiary, Jiangsu Yangzijiang Shipbuilding, or JYSCO, bought the 40 percent of Huayuan Logistics it didn’t already own for 119.30 million yuan (S$23.97 million or US$17.47 million).
Huayuan Logistics, which is based in Nanjing City in China, is primarily involved in leasing and chartering vessels and also owns a cargo transportation company, Shanghai Huayuan Shipping, it said in a filing to SGX after the market close on Friday.
Huayuan Logistics has a registered paid-up capital of 300 million yuan, while Shanghai Huayuan has registered paid-up capital of 200 million yuan, it said.
Yangzijiang said the acquisition was in line with its strategy to diversify its offerings beyond the core shipbuilding business, adding the deal could positively support its business.
It said that the deal consideration was arrived at based on a valuation report in mid-August by independent valuer Wuxi Youxin Assets Appraisal, which said the net value of tangible assets of Huayuan Logistics was 298.25 million yuan, on an asset-based approach.
The deal wasn’t expected to have a significant impact on earnings per share and net tangible assets per share for the current financial year, it said.