Singapore’s Cosco Corp has requested a trading suspension of its shares in the wake of “significant uncertainty” ahead of the company’s restructuring.
The shipbuilder, part of Cosco’s empire, will be affected by the establishment of Cosco Shipping Heavy Industry, the new shipbuilding entity unveiled last week.
Cosco Shipping Heavy Industry will combine as many as 13 shipyards and 20 more units into a single company.
Cosco Corp said the various options for carrying out the restructuring are still being considered and this is the reason for the trading suspension.
The company added further details of the restructuring and its immediate effect are expected to be disclosed in one month.
Cosco told its subsidiary Cosco Corp that the aim of the new structure would be to centralise operation and management of the shipyard businesses of the group.
