Subsidiaries of China Railway Corp to acquire 14% shares in Singapore-based Vallianz

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JAKARTA (rambuenergy.com) – Subsidiaries of China Railway Corporation (CRRC) inked deal to take a substantial stake of approximately 14 percent in Vallianz Holdings Limited, a Singapore-based offshore supporting vessels (OSV) and an integrated marine solutions tot he oil and gas industry. Vallianz owns a shipyard in Batam, Riau Islands as well as stakes in Indonesia’s vessel operator PT Vallianz Offshore Maritime.

Vallianz Holdings and together with its subsidiaries has entered into a subscription agreement with CSR Zhuzhou Electric Locomotive Research Institute (Hong Kong) Co., Limited and CRRC (Hong Kong) Co. Limited, both of which are subsidiaries of CRRC Corporation Limited (CRRC) that will bring in a total investment sum of S$23.65 million for Vallianz (the Proposed Investment), Vallianz said in a statement.

China’s state-owned CRRC is the world’s largest supplier of rail transit equipment with the most complete product lines and leading technologies.

Pursuant to the subscription agreement, the two subsidiaries of CRRC shall subscribe for an aggregate of 550 million new ordinary shares in Vallianz at S$0.043 per share. The new ordinary shares issued to CRRC will be subject to a moratorium period of one year from the date of completion of the Proposed Investment.

Both of Vallianz’s major shareholders, Swiber Holdings Limited (Swiber) and Rawabi Company Holding Limited (Rawabi), have undertaken to observe a similar moratorium period of one year on their existing shareholdings.

Upon completion of the proposed transaction, CRRC shall emerge as a substantial shareholder of Vallianz with equity interest of approximately 13.9 percent in the Company’s enlarged share capital. Together, Swiber, Rawabi and CRRC will have a combined shareholding of 53.6 percent in Vallianz. CRRC will also be entitled to a seat on Vallianz’s board of directors.

Ling Yong Wah, CEO of Vallianz said, “We are honoured that a major China state-owned corporation like CRRC is demonstrating its confidence in the Group’s business and our future prospects by taking a substantial equity stake in Vallianz.”

Jiang Yi, Deputy General Manager of CRRC Zhuzhou Electric Locomotive Research Institute Co. Ltd. said, “We identified Vallianz as the company possessing the capabilities to become our strategic partner and to help CRRC realize our plans to expand into the offshore and marine sector. Vallianz is an established owner and operator of offshore support vessels with a wide geographical reach as it serves national and international oil companies in Asia Pacific, Middle East and Latin America.”

“Together with its track record, in-house shipbuilding and design capabilities, we are confident that Vallianz can pave the way for CRRC to penetrate a new customer segment and showcase our offshore and marine technologies to the world,” added Jiang Yi. (*)