Rongsheng eyes CITIC investment?

qinxingchen

China’s Jiangsu Rongsheng Heavy Industries is said to become a center of issue as it contacted a state-owned company, CITIC Group, which runs businesses in finance, energy and real estate segment etc. to attract investment. According to South China Morning Post of China, the largest privately-owned shipbuilding company had a final talk with well-financed CITIC Group on January 26. Zhang Zhi Rong, founder and shareholder of Rongsheng Heavy Industries, reportedly contacted CEO of CITIC Group and others to attract investment and the total investment is said to be worth around $200m. Also, this financing is expected to be provided for improvement in financial structure of the company. Later, Rongsheng’s stock price has risen up to 7%. Opposed to the news, Rongsheng Heavy Industries said on January 27 through a regulatory filing that the company has no plan to attract investors or sell new shares. Also, the company knows nothing about the contact between Zhang and CEO of CITIC Group and if that contact happened, the contact should have been discussed first at board of directors because Zhang is a shareholder. The company refuted the news by saying that recently, no issues regarding the contact have been discussed at the board. Published : March 4, 2013