It is reported that China Shipbuilding Industry decided to terminate a private placement, switching to an issuance of 8.05 billion in convertible bonds.

Some CNY 3.63 billion will be used to acquire Wuchang Shipbuilding Industry, Henan Diesel Engine Industry, Shanxi Pingyang Industry Machinery, Zhongnan Equipment, Jiangshan Ship Machinery and Chongqing Hengshan Machinery. It will also buy a 29.41% interest in China Ship Design and Research Center.

Some CNY 4.42 billion will be used for 11 fixed asset investments. The convertible bonds have maturities of six years with face value of CNY 100 each at coupon rate of less than 3%t. The bonds will be first placed to existing A-share holders with the remainder to be sold to institutional investors.

In April, China Shipbuilding announced a private placement of one billion shares at 12.4 to raise as much as CNY 12.5 billion. It then planned to use CNY 5.36 billion to acquire stakes in the aforementioned seven targets with another CNY 4.14 billion spent on 11 infrastructure construction. As part of the original plan, China Shipbuilding also announced it would supplement its operating needs with CNY 3 billion raised in the scheduled private placement.

(Sourced from stcn.com)