Yangzijiang Shipbuilding is expected to buy the remaining 20% in compatriot shipyard Xinfu following its fundraising exercise, say analysts.
Last week the Chinese shipbuilder announced it was raising SGD 209m ($154.3m) through the private placement of 137m new shares at SGD 1.53 each.
“We believe the fund raising is a harbinger for mergers and acquisitions which in our view include the purchase of the remaining 20% stake in Xinfu shipyard which we estimate would contribute an incremental SGD 20m to SGD 25m to bottom line,” said DBS analyst Pei Hwa Ho.
