China Fund News reporter Qiu Dekun
On the evening of September 18, China Shipbuilding and China Heavy Industries, two 100-billion-level ship assembly listing platforms, released a trading plan at the same time, and planned to resume trading from the opening of the market on September 19.
According to the above-mentioned transaction plan, China Heavy Industry will be absorbed and merged by China Shipbuilding Share Exchange, and 1 share of China Heavy Industry can be exchanged for 0.1335 shares of China Shipbuilding Stock, with a restructuring transaction amount of 115.15 billion yuan.
After the completion of the transaction, CSSC will become the largest shipbuilding enterprise in mainland China. Previously, the outside world called the restructured company "China's god ship".
China Heavy Industries will terminate its listing
According to the transaction plan, after the completion of the share exchange and absorption merger, China Heavy Industry terminated its listing and cancelled its legal personality, and CSSC inherited all its assets, liabilities, business, personnel, contracts and all other rights and obligations.
Specifically, according to the average stock trading price of the 120 trading days before the pricing benchmark date, the exchange price of China Shipbuilding was determined to be 37.84 yuan per share, and the exchange price of China Heavy Industry was determined to be 5.05 yuan per share.
Therefore, it is determined that the share exchange ratio between China Heavy Industry and China Shipbuilding is 1:0.1335, that is, 1 share of China Heavy Industry can be exchanged for 0.1335 shares of China Shipbuilding Stock.
Industry insiders suggest that the integration of two listed companies with a market value of more than 100 billion yuan will become the largest M&A transaction in the A-share capital market in the past decade.
It is reported that the above two companies have been suspended since the market opened on September 3. As of the close of trading on September 2, the total market value of China Shipbuilding and China Heavy Industry was 156.1 billion yuan and 113.6 billion yuan respectively.
CSSC accelerates internal business integration
The restructuring comes five years after the merger of the two major groups, China State Shipbuilding Corporation (hereinafter referred to as China State Shipbuilding Group) has carried out another large-scale asset integration.
Summarizing the announcements of China Shipbuilding and China Heavy Industries, it can be seen that the two companies will integrate superior scientific research and production resources and supply chain resources through this transaction, accelerate the internal business integration of China Shipbuilding Group, further strengthen the top-level coordination of the main business, and effectively reduce peer competition.
In October 2021, the actual controllers of CSSC and China Heavy Industry Co., Ltd. were changed from China Shipbuilding Industry Group and China Shipbuilding Industry Group to China Shipbuilding Group respectively. Since then, ship assembly, as the core business of CSSC, has been mainly undertaken by CSSC and China Heavy Industries.
According to the official website, CSSC has integrated the large-scale shipbuilding and repair, mechanical and electrical equipment, marine engineering and other businesses of China Shipbuilding Group, and has a complete shipbuilding industry chain, with four subsidiaries being Jiangnan Shipbuilding (Group) Co., Ltd., Shanghai Waigaoqiao Shipbuilding Co., Ltd., CSSC Chengxi Shipbuilding Co., Ltd., and Guangzhou Shipbuilding International Co., Ltd.
According to the official website, China Heavy Industry Co., Ltd. is a listed company in the R&D, design and manufacturing of ships, and its main business covers five major business segments: marine defense and marine development equipment, marine transportation equipment, deep-sea equipment and ship repair and modification, ship supporting and mechanical and electrical equipment, strategic emerging industries and others.
In the first half of 2024, the net profit attributable to the parent company of China Shipbuilding and China Heavy Industry increased by 155.31% and 177.13% year-on-year respectively.
Pictured: Part of the financial data of China Shipbuilding's 2024 semi-annual report
Pictured: Part of the financial data of China Heavy Industry's 2024 semi-annual report
Editor: Captain
Review: Muyu