Yangzijiang Shipbuilding shareholders approve spinoff of Yangzijiang Financial

Shareholders of Yangzijiang Shipbuilding (Holdings) have approved the spinoff of its investment management business Yangzijiang Financial Holding (YZJFH) by wide margins at an extraordinary general meeting (EGM) Monday. 

The spinoff resolution was approved by around 3.0 billion shares voting in favor, with 1,400 shares voting against, while the proposal to distribute YZJFH shares as a dividend in specie to existing shareholders had around 3.0 billion shares voting in favor, and 21,400 shares voting against, the shipbuilder said in a filing to SGX.

Yangzijiang Shipbuilding has previously said the expected book closure date to be eligible for the distribution would be 25 April, with the YZJFH shares expected to begin trade on 28 April.

Shareholders as of the book closure date will receive one YZJFH share for every Yangzijiang Shipbuilding share held, the company said last week. Around 3.95 billion YZJFH shares will be distributed, with a total share capital of CNY20 billion, the company said last week. 

Every YZJFH share is estimated to be valued at around S$1.08, based on the current Singapore dollar to Chinese yuan exchange rate, Yangzijiang Shipbuilding said last week. 

Yangzijiang Shipbuilding has previously said it expected the spin-off company to have a market capitalization of S$4.26 billion after listing.

Upon listing, YZJFH will shift its debt investment business to focus on fund investments for longer investment horizons, such as private debt and mezzanine funds under the investment management business in China, the company has previously said.