China State Shipbuilding Corp(CSSC)and China Shipbuilding Industry Co(CSIC)implemented their shares swap registration on Thursday,with the CSIC to delist on Friday,a stock exchange filing on the Shanghai Exchange Stock showed on Thursday.
The move represented the latest progress on CSSC's absorption and merger through the share swap with the CSIC.An earlier stock exchange filing in June said that once the deal is completed,CSSC will become the world's largest listed shipbuilding group.
According to the Wednesday's filing,the CSSC said that the share swap registration date for the transaction is Thursday.After the market closes on the share swap registration date,all registered shareholders of the CSIC will have their shares converted into CSSC shares at a ratio of 1:0.1339,meaning each share of CSIC will be converted into 0.1339 shares of CSSC.
The A-shares of CSIC will officially cease trading on Friday,the filing said.Thereafter,the A-shares of the company will no longer be displayed in the stock accounts of its shareholders,and the corresponding market value will not be reflected in the total market value of investors'accounts.This will continue until the A-shares of CSIC are converted into A-shares of CSSC and the procedures for listing the newly issued A-shares are completed.
From the listing date of the new shares,the stock accounts of the original CSIC A-share shareholders will display the A-shares of CSSC,and the corresponding market value will be reflected in the total market value of investors'accounts,per the filing.
The filing said that upon completion of the deal,CSIC will be delisted and its legal entity status will be canceled.CSSC will assume and undertake all of CSIC's assets,liabilities,businesses,personnel,contracts,and all other rights and obligations.
In September last year,CSSC announced that it was planning to absorb and merge CSIC by issuing A-shares to all shareholders of CSIC in a share swap.On July 4 this year,the deal was approved by the Shanghai Stock Exchange,which marks the official completion of the largest absorption and merger case in the history of A-shares,the stcn.com reported.
A filing released in June in response to the inquiry regarding the application for the absorption and merger said that the deal is aimed at integrating core ship assembly operations and regulate competition within the same industry among listed companies.
Upon completion of the deal,the surviving company will become a flagship listed shipbuilding company with leading global rankings in asset scale,operating revenue,and order backlog,creating a world-class shipbuilding enterprise with top-tier international competitiveness,per the filing.
Moreover,the surviving company's market influence will be comprehensively increased,enabling it to more effectively leverage the resource allocation role of the listed platform.By capitalizing on the latest achievements in capital market reforms,it will utilize the financing functions of the capital market,strengthen its ability to support industrial development through capital operations,and continuously invest in deep-sea technology research and equipment manufacturing,providing technological and equipment support for deep-sea resource development and the high-quality growth of the marine economy,said the filing.
