GSI to swallow yards

China State Shipbuilding Corporation (CSSC) is planning to transfer yard assets to Guangzhou Shipyard International (GSI) as part of its reorganisation.

Hong Kong-listed GSI’s shares have been suspended since 7 April to allow the “significant assets restructuring” to be carried out, although no details had emerged before an announcement on Wednesday.

Now GSI has revealed : “It has been initially determined that the shipbuilding-related business of CSSC in southern China is proposed to be injected into the company.”

An army of financial advisors, lawyers and accountants are beavering away on deals, but the complex work is taking longer than expected.

As a result, GSI said it would keep the stock suspended for a maximum of another month.

Other CSSC group yards include Guangzhou Wenchong, Xijiang Shipbuilding, Jiangnan Shipyard and Hudong-Zhonghua Shipbuilding.

In January, GSI took over Longxue Shipyard.