On the evening of November 8, China Shipbuilding Industry Group Power Co., LTD. (hereinafter referred to as “CSICP”), which suspended trading for 12 days, issued the announcement of “Issuing convertible corporate bonds and paying cash to purchase assets and raising matching funds and related transaction Plan”.
The announcement disclosed that CSICP intends to purchase 16.5136% equity interest in CSSC-MES Diesel (CMD) owned by China State Shipbuilding Corporation Limited (CSSC) through issuance of convertible bonds and payment of cash, and to raise matching funds by issuing convertible bonds to no more than 35 specific investors.
According to the announcement, the transaction is a connected transaction in which CSICP acquires a minority interest in a subsidiary within the scope of consolidation. After the completion of the transaction, there will be no change in the main business of the listed company. As of the date of signing of the proposal, the audit and evaluation of the subject company has not yet been completed, and the specific transaction price of the transaction has not yet been determined.
CSICP said the transaction is another important deployment of the company’s diesel engine business. Through this transaction, the company will further strengthen the deep integration of the diesel engine business. At the same time, the company will make up for the short board of the industrial chain in R & D and after sales and marketing, etc. CSICP’s stock resumed trading on November 11th from the opening of the market.
After the completion of this transaction, CSICP holds 68.37% of the equity interests in CSIC Diesel, while CSSC no longer holds equity interests in CMD.
Public information shows that CSICP is a listed power equipment company under China State Shipbuilding Corporation. Its main businesses cover seven types of power equipment, including gas power, steam power, diesel power, integrated power, chemical power, hot gas power, and nuclear power (equipment), as well as electromechanical supporting services. The company is a one-stop solution provider for high-end power equipment, integrating R&D, manufacturing, system integration, sales, and services. It is a major developer and manufacturer of naval ship power and transmission equipment in China.