[SINGAPORE] YZJ Maritime Development, the proposed spin-off from Yangzijiang Financial Holding, intends to raise up to S$250 million through the placement of new shares to accredited investors and institutional investors.
YZJ Maritime, which is the maritime investment segment of the legacy company, also intends to grant an over-allotment option to investors, subject to regulatory approval and market conditions.
The YZJ Maritime shares will be distributed to existing Yangzijiang Financial shareholders via a capital reduction. No payment will be required from entitled shareholders for the YZJ Maritime distribution.
YZJ Maritime was incorporated on Apr 28 this year, at an issued and paid-up share capital of US$100, comprising 100 ordinary shares issued at US$1 per share.
This subsidiary currently serves as a holding company of YZJ Financial, and the group presently owns the entire share capital in YZJ Maritime.
Yangzijiang Financial said in a bourse filing on Tuesday (Aug 12) that the spin-off will, among other things, promote financial independence and direct access to capital markets for the proposed company, and allow it greater investment flexibility.
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“As a pure-play maritime development company, it is anticipated that YZJ Maritime will enhance market valuation through sharper capital allocation, tighter strategic focus, and improved operational efficiency,” said Yangzijiang Financial.
The completion of the proposed spin-off is subject to shareholder’s approval at an extraordinary general meeting on Sep 4.
Following the group restructuring exercise, the book value and net tangible assets value attributable to equity holders of YZJ Maritime is expected to be approximately S$2 billion.
Yangzijiang Financial’s executive chairman and chief executive officer Ren Yuanlin will lead the spin-off group.
The counter ended S$0.015, or 1.5 per cent, higher at S$0.99 on Tuesday before the announcement.
