Yangzijiang to transfer existing investments to spin-off group for public listing

Singapore five-dollar note Photo by Leslie Shaffer

Yangzijiang Shipbuilding (Holdings) said Tuesday its proposed spin-off of its investment segment would involve transferring existing assets into a newly incorporated company, the Spin-off Group, followed by a listing-by-introduction on SGX’s Mainboard.

If the proposed spin-off and listing is successfully completed, Yangzijiang will receive shares of Spin-Off Group proportionally in the form of dividend in specie, the Chinese shipbuilder said in a filing to SGX.

On Tuesday, the company appointed CLSA Singapore as the issue manager for the deal, and legal advisors have been appointed in China and Singapore, the filing said.

In addition, ICapital Holdings (SG) was appointed as the adviser to the restructuring, the filing said.

In late November, Yangzijiang announced it was exploring the potential spin-off, aiming for a listing within six to 12 months.

The spin-off group will focus on asset management and direct investments, Yangzijiang said in late November, noting currently, its investment segment is mainly micro-financing, debt investments at amortised costs and other investments.

The spin-off group will focus on asset management and direct investments, Yangzijiang said previously, noting currently, its investment segment is mainly micro-financing, debt investments at amortised costs and other investments.

“It is intended for the spin-off group to realign its existing investment portfolios towards more growth-oriented investments, expanding global footprint and growing fee-income business, hence diversifying from the current single industry, country and asset portfolio,” Yangzijiang said in November. “The spin-off group will have greater capital resources and flexibility to form asset management capabilities.”