China Rongsheng unit sued over failed engine maker deal

Shipbuilder China Rongsheng's troubles continue to mount with the company announcing that its Jiangsu Rongsheng Heavy Industries subsidiary has been sued by  Aegon Industrial Fund Management for RMB16.37m plus costs as a result of its failed deal to take over engine maker Anhui QuanchaiEngine Co, Seatrade Asia online reports.

The amount is in compensation for  the loss Aegon allegedly suffered from its investment in the shares of Anhui Quanchai Engine as a result of Jiangsu Rongsheng Heavy Industries’ fault in concluding the acquisition of the engine maker.

Jiangsu Rongsheng Heavy Industries said it believes that the action is frivolous and as such will be strenuously defended.