Titan Petrochemicals Group buys US$170m shipyard in Quanzhou
Titan Petrochemicals Group, which operates crude-oil tankers and fuel storage facilities, said it will buy a shipyard in Quanzhou in southeastern Fujian province from its chairman and for a consideration of US$170 million (HK$1.33 billion) to expand its logistics business.
In a statement, Titan Petrochemicals said it will pay US$56.9 million cash for Titan Quanzhou Shipyard, and the remainder by issuing ordinary and preferred shares.
Titan Petrochemicals said the yard has ship repair, ship building and offshore engineering operations, and received orders of 22 vessels, amounting to US$210 million.
The shipyard was completed in September last year and shipbuilding operations will be fully functional by the end of 2009.
"We believe that now is the right time to bring Titan Quanzhou Shipyard into the group's business portfolio," said Barry Cheung Chun-yuen, chief executive of Titan Petrochemicals.
"The yard is developing very rapidly and its design features will allow it to benefit from the favorable and robust market environment."
Once the deal is completed, chairman and controlling shareholder Tsoi Tin-chun and affiliates will hold 58.8 percent of the company.
Before the announcement of the deal, Titan said interim net profit jumped 132 percent to HK$152 million on higher turnover in crude trading and a one-off gain from disposal of vessels. Revenue in the first half rose 19 percent to HK$7.695 billion. No dividend was declared.
Titan realized HK$105 million from selling vessels, and it plans to sell two more in the second half.
Income from oil product supplies jumped 109 times to HK$216 million, while contribution from oil storage business surged 22 times to HK$49 million.
Shares of Titan Petrochemicals closed at 62 HK cents, up 1.64 percent.
In a statement, Titan Petrochemicals said it will pay US$56.9 million cash for Titan Quanzhou Shipyard, and the remainder by issuing ordinary and preferred shares.
Titan Petrochemicals said the yard has ship repair, ship building and offshore engineering operations, and received orders of 22 vessels, amounting to US$210 million.
The shipyard was completed in September last year and shipbuilding operations will be fully functional by the end of 2009.
"We believe that now is the right time to bring Titan Quanzhou Shipyard into the group's business portfolio," said Barry Cheung Chun-yuen, chief executive of Titan Petrochemicals.
"The yard is developing very rapidly and its design features will allow it to benefit from the favorable and robust market environment."
Once the deal is completed, chairman and controlling shareholder Tsoi Tin-chun and affiliates will hold 58.8 percent of the company.
Before the announcement of the deal, Titan said interim net profit jumped 132 percent to HK$152 million on higher turnover in crude trading and a one-off gain from disposal of vessels. Revenue in the first half rose 19 percent to HK$7.695 billion. No dividend was declared.
Titan realized HK$105 million from selling vessels, and it plans to sell two more in the second half.
Income from oil product supplies jumped 109 times to HK$216 million, while contribution from oil storage business surged 22 times to HK$49 million.
Shares of Titan Petrochemicals closed at 62 HK cents, up 1.64 percent.