Yangzijiang Shipbuilding (Holdings) Ltd - Can it really benefit from Beijing Highlander deal?

8/7/2015 – Yangzijiang Shipbuilding Holdings Ltd's wholly-owned subsidiary Jiangsu Yangzijiang Shipbuilding Co Ltd has agreed to acquire a 23.6% stake in joint venture company, Shanghai Laurel Ocean Systems Limited for RMB 130 mln.

Shanghai Laurel Ocean Systems Limited is yet to be incorporated and two other unidentified investors will own a 36.4% and 40% stake respectively.

In its announcement, Yangzijiang said the joint venture company in Shanghai will provide key technique, professional equipment, system integration services and project implementation services in the field of marine intelligence and ocean information technology.

Interestingly, Yangzijiang appears to be contradicting itself later in that announcement.

Yangzijiang added that immediately after its incorporation, Shanghai Laurel Ocean Systems Limited will be sold to Shenzhen Stock Exchange listed Beijing Highlander Digital Technology Co Ltd in a share swap.

Beijing Highlander Digital Technology Co Ltd will issue 28,705,600 new shares at RMB 19.16 per share in a private placement to the shareholders of Shanghai Laurel Ocean Systems Limited.

As a result, Yangzijiang will cease to be a shareholders of Shanghai Laurel Ocean Systems Limited and instead become a shareholder of Beijing Highlander Digital Technology Co Ltd.

Investor Central. Asian insights for global investors. We ask the tough questions of Asian companies which global investors need answers to.

Question

1. Who are the other two investors in Shanghai Laurel Ocean Systems Limited?

Curiously, Yangzijiang's announcement didn't reveal the identities of the other two investors who will own a 36.4% stake and a 40% stake respectively in the joint venture company.

Question

2. How much would they pay for acquiring the stakes in the proposed JV company?

While Yangzijiang will pay RMB 130 mln for a 23.6% stake in Shanghai Laurel Ocean Systems Limited, the announcement didn't mention how much will the other two investors pay for their stakes.

(Read the full story to get all 9 questions)

We have invited the company to an on-camera interview, and/or to reply to our questions in writing.

At the time of publication we have not received a reply (which is why you are seeing this message).

We will update this report if we do.

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