Guangzhou to Purchase Shipyard

Guangzhou Shipyard International Co reportedly plans a rights issue to fund the purchase of a shipyard for up to $452 m from its state-owned parent company,accoording to a Reuters report. Guangzhou Shipyard will offer three shares for every 10 shares held by owners of its Hong Kong-listed H shares and Shanghai-listed A shares, at a price of no less than 4.96 yuan per share, the company reportedly said in a statement.

China State Shipbuilding Corp (CSSC), the company's parent firm, has put its Guangzhou-based Wenchong Shipyard up for sale on the Beijing Equity Exchange.

(Reuters)