Yangzijiang Financial shares down 56% on ex-entitlement to YZJ Maritime shares
[SINGAPORE] Shares of Yangzijiang (YZJ) Financial Holdings dove by over 56 per cent on Monday (Nov 10) morning, amid recent developments such as a cancellation of an electric-vehicle (EV) battery deal with Ningbo Shanshan.
As at 9.02 am, the counter declined to S$0.455, before reaching an intra-day low of S$0.44 by 9.07 am. The shares subsequently rose back up to S$0.50 at 9.20 am, before trading at S$0.49, still down 53.8 per cent or S$0.57.
In a bourse filing on Nov 6, the group has announced that its plans to invest about 1 billion yuan (S$183.1 million) in the restructuring of Ningbo Shanshan would not be going through. This is in light of how its wholly owned subsidiary, Jiangsu New Yangzi Commerce and Trading, and two strategic investors were unable to secure an approval from the creditors of the lithium battery producer.
Meanwhile, YZJ Maritime Development is set to raise gross proceeds of at least S$5.2 million via a private placement of about 8.6 million fully paid ordinary shares at a price of S$0.60 per share.
The placement represents about 0.25 per cent of YZJ Maritime’s share capital, which at present totals around 3.5 billion shares, with an issued capital valued at US$1.45 billion. Upon completion of the distribution and placement, YZJ Maritime expects a market capitalisation of S$2.04 billion, reported The Business Times previously.
YZJ Maritime Development is a spin-off from YZJ Financial’s maritime investment segment.
Yangzijiang (YZJ) Financial’s executive chairman and CEO, CFO and lead independent director have resigned as the company prepares to spin off its existing maritime investments under YZJ Maritime.
