GSI seals yard takeover

Guangzhou Shipyard International (GSI) has completed the long-awaited takeover of Longxue Shipyard.

The Hong Kong and Shanghai-listed shipyard raised HKD 2.8bn ($364m) from the sale of 387.4m new shares at HKD 7.29 each, it announced today in a stock exchange filing.

China State Shipbuilding Corp (CSSC), Baosteel Resources and China Shipping have purchased the shares in proportion to their respective 60%, 30% and 10% stakes in Longxue.

The three companies now control 60.25% of the enlarged GSI after the issue.

GSI agreed a $156m deal for the yard in October while the remaining funds are earmarked to repay outstanding debt.

The group will focus on building tankers of up to 60,000-dwt as well as VLCCs and VLOCs.