Top Page | English | 简体中文 | 繁體中文 | 한국어 | 日本語
Tuesday, 2 January 2018, 08:50 HKT/SGT
Share:
Honghua (196.HK) Disposes Offshore Segment in Public Tender at SUAEEX; Total Consideration of Approximately RMB1.7 billion

HONG KONG, Jan 2, 2018 - (ACN Newswire) - Honghua (Stock Code: 196.HK), a leading global land drilling rig manufacturer, today announce that subsequent to the previous announcement issued on December 27 in relation to the proposed disposal of its offshore business through the Public Tender, the Company announced that the disposal have been publicly listed for sale on the Shanghai United Assets and Equity Exchange ("SUAEEX") starting from December 28, 2017 at a total consideration of approximately RMB1.7 billion and the bidding period is expected to be ended on January 25, 2018.

According to the publicly disclosed information of SUAEEX, the offshore business under the tender will include: Honghua's 100% indirect equity interest in Honghua Offshore oil & gas equipment (Jiangsu) Co., Ltd., ("Jiangsu Offshore"), a wholly-owned subsidiary of the Group; 100% indirect equity interest in Shanghai Honghua Offshore Oil and Gas Equipment Co., Ltd. ("Shanghai Offshore"), a wholly-owned subsidiary of the Group and its indirect creditor's rights against Jiangsu Offshore at a considerations of RMB15.7 Billion; and through one-in-all contract with the ultimate buyer for Honghua's entire 30% indirect equity interest in Prime FSP, LLC ("Prime"), its entire 25% indirect equity interest in FSP LNG B.V. ("FSP") and its entire 70% indirect equity interest in Hong Kong Tank Tek Limited ("Tank Tek") and Honghua's indirect creditor's rights against it ( Debt principal around US $16,065,000). Above all the shares listed on the Public Tender, the base bidding price is RMB1.00, the Group is expected to use the abovementioned creditor?s rights against the main consideration of the offshore business.

The Offshore Segment mainly focuses on the manufacturing of offshore drilling equipment and LNG-related technologies. The Company states offshore drilling business was adversely impacted by the significant uncertainties and price fluctuation of the global oil market in recent years. The Company held positive opinion towards the future development of LNG industry, but transforming Offshore Segment requires strategic partners, capital investment and other related resources. The Company will focus on equipment manufacturing and oil & gas resources development and engineering services in the future to improve the Company's core competitive advantages, and profitability. Meanwhile, the disposal would help Honghua enhance its capital structure, resource allocation and financial performance, as well as balance the short-term and long-term interest of the Company and its shareholders.

About Honghua Group Limited (Stock Code: 196.HK)
Honghua is the only overseas listed platform controlled by China Aerospace Science and Industry Corporation ("CASIC"), and positioned as the energy equipment business platform of CASIC. As one of the leading land drilling equipment manufacturers in the world and the largest land drilling rig exporter in PRC, Honghua is primarily engaged in manufacturing conventional land drilling rigs, digital drilling rigs, accessories of drilling rigs, as well as the parts and components for the drilling rigs or for the maintenance of the drilling rigs in operation. Leveraging on the strong R&D strength, high-quality production facilities and mature international sales network, Honghua's 80% products have been sold to a large number of famous enterprises all over the world, including major oil-production regions such as North America, Middle East, and emerging markets including South America, India, Russia, China and Africa. In the future, Honghua and CASIC will have in-depth cooperation in advanced energy equipment manufacturing and oil & gas field services field and achieve synergy in R&D, project execution and market expansion, to become an international leading combining equipment manufacturing provider in oil & gas industry.




Jan 2, 2018 08:50 HKT/SGT
Topic: Press release summary
Sectors: Daily Finance, Energy, Daily News
http://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2018 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.



Latest Press Releases
29th Hong Kong Book Fair Opens with Record 680 Exhibitors from 39 Countries  
July 18, 2018 20:00 HKT/SGT
FTLife Launches New Annuity Product  
July 18, 2018 19:50 HKT/SGT
Breaking News: DeeMoney Becomes Thailand's ONLY Non-Bank to Hold International Money Transfer & Money Exchange Licenses  
July 18, 2018 18:20 HKT/SGT
Update on Mazda Plant Operations from July 23 Following Record Rains  
July 18, 2018 17:20 HKT/SGT
Shares of 7Road Holdings Limited (Stock Code: 797) Commences Trading on Main Board of SEHK  
July 18, 2018 17:07 HKT/SGT
Hong Kong Sports and Leisure Expo Opens Today  
July 18, 2018 16:00 HKT/SGT
Media Invite for SCCCE ART EXHIBITION, ENTERPRISE FORUM AND PRESIDENT'S CHALLENGE CHARITY DINNER  
July 18, 2018 14:30 HKT/SGT
AUW Announces Scholarships for Yemeni Women  
July 18, 2018 14:10 HKT/SGT
Xarbon Launches Asia's First Digital Carbon Credit and Partners with UNOPS to Support the Low-Carbon Economy  
July 18, 2018 13:20 HKT/SGT
"BE@RBRICK SUMMER CHILL" Summer Party at Harbour City  
July 18, 2018 13:00 HKT/SGT
More Press release >>
 News Alerts
Copyright © 2018 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Privacy Policy | Terms of Use | RSS
US: +1 800 291 0906 | Beijing: +86 10 8405 3688 | Hong Kong: +852 2217 2912 | Singapore: +65 6304 8926 | Tokyo: +81 3 6721 7212

Connect With us: