China's AVIC to acquire Deltamarin

bdeltaOCTOBER 15, 2012 — AVIC International Investments Limited, a Singapore-listed offshoot of China's government-controlled AVIC Group, has signed an agreement to acquire the majority of shares in Finnish ship design and engineering specialist Deltamarin Ltd, whose designs include the B Delta series of bulkers under construction at a number of Chinese shipyards.

Deltamarin says that after the acquisition its existing operations will continue as they are and the business will remain independent keeping the name and the brand of Deltamarin unchanged.

In a Singapore stock exchange announcement, AVIC International Investments says it is paying €32.1 million (about US $41.5 million) for a near 80 percent of Deltamarin's shares.
AVIC says the acquisition "will contribute greatly to the Group's growth strategy to be a dominant player in the global shipping industry. The Group is principally involved in the provision of project management and consultancy services in relation to ship-trading and shipbuilding. The Group works with established shipyards in China as co-vendor whereby the shipyards are responsible for the construction of the vessels and the Group is in charge of the non-construction aspects of the shipbuilding project, including but not limited to the design/development of vessels which will be out-sourced to the renowned ship-design institutes in China."

AVIC notes that "Deltamarin is an experienced developer of profitable, sustainable and energy efficient concept vessels and that the acquisition "will allow the Group to tap on Deltamarin's expertise, inter alia, in ship design and concept development and therefore establish the Group's own design capability. Upon the completion of the Proposed Acquisition, Deltamarin will become a major ship designing arm of the Group."

Want more? Subscribe now!

News from NASDAQ