Yantian Port Raises RMB 4 Billion For Major Asset Reorganization

Yantian Port Holdings Co., Ltd. recently announced a successful fundraising effort to support its major asset reorganization, securing RMB 4.002 billion (around $563 million) through share issuance. This development strengthens Yantian Port’s financial position and invites significant institutional investment, notably from COSCO Shipping Holdings, which has become the port’s second-largest shareholder. The raised capital will enhance Yantian Port’s assets, optimize its debt structure, and further its growth strategy, positioning it for long-term stability and expansion in China’s competitive port industry.

Key Highlights

• Fundraising and Subscribers: Yantian Port has announced raising RMB 4.002 billion (approx. $563 million) by issuing 913,758,995 shares at RMB 4.38 per share to eight subscribers, including major investor COSCO Shipping Holdings.
• COSCO’s Investment: COSCO Shipping Holdings invested nearly RMB 1 billion (approx. $141 million), securing a 4.39% stake in Yantian Port, becoming its second-largest shareholder.
• Top Shareholders Post-Issuance: Following this issuance, Yantian Port’s top shareholders will be Shenzhen Port Group (68.36%), COSCO Shipping Holdings (4.39%), and ICBC Financial Asset Investment (3.29%).
• Financial and Structural Benefits: The raised funds will increase Yantian Port’s total and net assets, lower its asset-liability ratio, and improve financial stability and debt repayment ability. This issuance also enhances the shareholding structure by increasing institutional investor presence, aiming to bolster governance and support sustainable growth.

Background

The project received approval from the China Securities Regulatory Commission (CSRC) on December 7, 2023, marking significant progress in integrating Shenzhen Port Group’s port and shipping resources.