- Largest absorption and merger in A-shares history.
- Share swap ratio set at 1:0.1339.
- CSIC A-shares to cease trading and convert to CSSC shares.
China State Shipbuilding Corp (CSSC) and China Shipbuilding Industry Co (CSIC) took a significant step on Thursday by finalising their share swap registration. According to a recent filing with the Shanghai Stock Exchange, CSIC is set to delist officially on Friday, reports Global Times.
Largest Absorption and Merger in A-Shares History
This development marks a significant milestone in CSSC’s plan to absorb and merge with CSIC through a share swap. An earlier filing from June indicated that once this process is complete, CSSC will become the world’s largest publicly listed shipbuilding group. The Shanghai Stock Exchange gave its approval for the deal on July 4, marking it as the largest absorption and merger in the history of A-shares.
Details of the Share Swap
CSSC’s filing confirmed that the share swap registration took place on Thursday. After the market closed that day, all CSIC shareholders will see their shares converted into CSSC shares at a ratio of 1:0.1339, meaning each CSIC share will turn into 0.1339 CSSC shares. Trading of CSIC’s A-shares will stop on Friday, and they won’t appear in shareholders’ accounts until they are converted into CSSC A-shares and officially listed. Once that happens, CSIC shareholders will see CSSC A-shares reflected in their accounts along with their new market value.
Delisting of CSIC and Transfer of Rights
Once the process is finalised, CSIC will be delisted, and its legal entity status will be cancelled. CSSC will take over all of CSIC’s assets, liabilities, contracts, businesses, personnel, and obligations, effectively merging the two companies into one.
Strategic Goals of the Merger
CSSC first revealed its intention to absorb and merge with CSIC back in September of last year, aiming to streamline core ship assembly operations and manage competition within the shipbuilding industry. The resulting company will stand out as a leading listed shipbuilder, excelling globally in asset scale, revenue, and order backlog. This merger is set to create a world-class enterprise with exceptional international competitiveness.
Strengthening Market Influence and Innovation
The filing highlighted that the merger would enhance CSSC’s market presence and improve its ability to allocate resources effectively. By leveraging capital market reforms, the company plans to strengthen its financing capabilities, support industrial growth, and increase investments in deep-sea technology and equipment manufacturing. These initiatives are set to drive technological innovation and offer strong support for tapping into deep-sea resources, all while promoting the sustainable growth of the marine economy.
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Source: Global Times
