In contrast, Yangzijiang’s net asset value as at Dec 31 2021 was RMB9.16 ($1.95) per shares. Based on March 25 closing price of $1.46, it has a market value of $5.8 billion.
Existing Yangzijiang shareholders will receive a dividend-in-specie of one YZJFH shares for each Yangzijiang shares they hold.
While Yangzijiang, a component of the Straits Times Index, will remain focused on its core business of ship-building, YZJFH will focus on investment management and debt investment.
It will try and broaden its investment activities beyond China into other markets.
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YZJFH will also look at new asset classes including public markets, private debt, mezzanine financing, private equity and special situations.
By stepping up its fund and wealth management activities, it hopes to build a recurring stream of income.
Ren Letian, Yangzijiang’s executive chairman and CEO says that the spin off was to unlock value for shareholders.
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He notes that since the company’s listing on SGX 15 years ago, it has been paying out dividends consistently.
“Following a successful spin-off, both entities will remain committed to delivering sustainable returns and dividends to shareholders of both listed entities,” says Ren.
YZJFH, the spin-off, will be run by Ren's father Ren Yuanlin, who was the executive chairman before him.
The proposed listing is subject to, among other things, the relevant regulatory and other approvals being obtained as well as the go-ahead by shareholders at an EGM to be held.
