CIMC Shelves Sinopacific Acquisition
By Aiswarya Lakshmi
Thursday, June 2, 2016
CIMC Enric, an affiliate company of China International Marine Containers (CIMC), has announced that it has terminated the acquisitions of Sinopacific Offshore & Engineering (SOE), the offshore unit of Sinopacific Shipbuilding.
CIMC Enric said the Board decided not to proceed with the proposed acquisition of the entire equity interest of SinoPacific Offshore & Engineering Co., Ltd. as certain conditions precedent have not been fulfilled or waived.
Last year, CIMC has struck a deal with Evergreen Holding and its subsidiaries to acquire Nantong SOE for at least CNY700 million (USD109 million) in cash and shares.
In the meantime, the Board is considering various alternatives in protecting the rights and values of the Group's interests in the target company, including but not limited to the commencement of restructuring procedures against the target company pursuant to the relevant laws and regulations of the PRC.
The target is principally engaged in the design and manufacturing of IMO Type C Tank; production, design, manufacturing and delivery of liquid cargo handling system for small and mid-size liquefied ethylene gas (LEG)/ liquefied petroleum gas (LPG)/ liquefied natural gas (LNG) carriers, and complete vessel construction; and production, design and manufacturing of marine oil and gas module.