In a statement to the Hong Kong and Shanghai StockExchanges, GSI gave little away except to say the proposal would allow it to makepurchases that would “constitute a significant asset restructuring.”
It comes barely two months after the company finalised a HKD2.8bn ($364m) fundraiser backed by state-controlled parent China StateShipbuilding Corporation (CSSC).
The sale, completed in mid-February, was the final step inGSI’s long-awaited $156m takeover of Longxue Shipyard, which has given theshipbuilder the capacity to construct larger vessels.
Longxue Shipbuilding has two large docks with the capacityof 500,000 tons, four berths and has an annual shipbuilding capacity of 3.5 milliondwt.
Trading in GSI was halted last week after it announced that CSSC was preparing a “material transaction”,an approach adopted prior to announcing the last fundraiser nearly a yearago.
The suspension will continue for a further 30 days fromtomorrow pending further announcements though GSI pledged to issue an update atleast every five days.
