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Yangzijiang Shipbuilding falls 2.9% after BlackRock sells 37.8 million shares

Yangzijiang Shipbuilding falls 2.9% after BlackRock sells 37.8 million shares

By Swedan Margen

Fashion

Shares of Yangzijiang Shipbuilding fell as much as 5 per cent on Wednesday (Nov 5) after asset manager BlackRock ceased to be a substantial shareholder.

BlackRock sold about 37.8 million shares in total on Oct 29 and 31, with the shipbuilder informed about each trade on the next business day.

In a bourse filing on Tuesday evening, Yangzijiang Shipbuilding noted that the Oct 31 sale of about 27.5 million shares meant that BlackRock was no longer a substantial shareholder of the company.

Shares of the shipbuilder dropped as low as S$3.26 at market open, a fall of S$0.17 from its previous closing price of S$3.43. The company currently has about 3.9 billion shares outstanding.

The counter later pared some of the losses to close 2.9 per cent or S$0.10 lower at S$3.30 on Wednesday.

In September, Yangzijiang Shipbuilding said three of its subsidiaries had cancelled shipbuilding contracts worth around US$180 million with an unnamed buyer.

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Yangzijiang's three subsidiaries have since determined that the unknown buyer is in anticipatory repudiatory breach of the contracts.

The contracts had been for four units of 50,000 deadweight tonnage medium-range oil tankers.

The company is set to announce its third-quarter earnings next week on Nov 10.

Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Grazia British.

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