Yangzijiang Financial invests in treasury shares for S$139.3 million in maritime investments

Yangzijiang Financial Raises S$139.3 Million through Share Placement

Corporate Action

Yangzijiang Financial has raised net cash proceeds of S$139.3 million through a placement of its treasury shares, with the aim of redeploying the funds for maritime investments.

Share Placement Details

The financial arm of Yangzijiang Shipbuilding agreed to divest its entire treasury shareholding of 193.5 million shares at S$0.72 apiece. The price represents a 111 per cent premium to its average buyback cost, but a 9.7 per cent discount to the weighted average price of S$0.7975 for trades done during the full market day on March 28.

Background

The treasury shares were originally repurchased at an average cost of S$0.34 per share under Yangzijiang Financial’s S$200 million share buyback programme.

Placement Parties

The purchasers – Merlion Quay Capital and Operie Capital – are two separate entities, each established by an investor and three senior executives of Yangzijiang Financial.

Proceeds Allocation

Net proceeds will be deployed towards the group’s core maritime investments, in line with its strategy to capitalise on industry tailwinds driven by increasing decarbonisation. In the interim, proceeds may also be temporarily allocated to bank deposits or cash management activities for capital appreciation.

Executive Commentary

Yangzijiang Financial executive chairman and chief executive Ren Yuanlin noted that the company’s shift into maritime-related investments has already yielded promising results, with their revenue contribution more than doubling in financial year 2024.

Conclusion

The proposed sale is expected to be completed by June 26, with the sale shares representing 5.27 per cent of the total number of issued shares in the company. The success of this placement demonstrates investor confidence in Yangzijiang Financial’s long-term vision and growth potential.

Frequently Asked Questions

Q: What is the purpose of Yangzijiang Financial’s share placement?
A: The company aims to raise net cash proceeds of S$139.3 million to redeploy funds for maritime investments, in line with its strategy to capitalise on industry tailwinds driven by increasing decarbonisation.

Q: Who are the purchasers of Yangzijiang Financial’s treasury shares?
A: The purchasers are Merlion Quay Capital and Operie Capital, two separate entities established by an investor and three senior executives of Yangzijiang Financial.

Q: How will the net proceeds be allocated?
A: The net proceeds will be deployed towards the group’s core maritime investments, with the possibility of temporary allocation to bank deposits or cash management activities for capital appreciation.

Q: What is Yangzijiang Financial’s growth potential?
A: The company’s shift into maritime-related investments has already yielded promising results, with their revenue contribution more than doubling in financial year 2024. The company’s long-term vision and growth potential have been endorsed by investors and senior executives through this placement.