China: Xiangyu Dredging Holdings Acquires Equity Interest in Jiangsu Jiaolong
Xiangyu Dredging Holdings Limited, the largest privately owned dredging company in China in terms of dredging volume in 2010, has announced the completion of acquiring the equity interest in Jiangsu Jiaolong Salvage Harbour Engineering Co. Ltd. (Jiangsu Jiaolong).
Jiangsu Jiaolong is principally engaged in the business of salvaging sunk objects and contractor of provision of engineering services for ports and channels. It is certifiedwith Class I salvaging qualifications for inland rivers and Class II salvaging qualifications for coastal waters awarded by the Diving and Salvaging Management Committee of the Ministry of Communications and Class II sub-contractor engineering qualifications for port and waterways by Construction Engineering Administration of Jiangsu Province. It was also recognized as one of the leading enterprises among domestic peers (excluding national professional salvage teams) in China by China Diving and Salvage Industry Association.
Upon the completion of acquisition of equity interest and the capital injection, Xiangyu Dredging would have possessed 51% equity interest of Jiangsu Jiaolong, representing the controlling interest at Jiangsu Jiaolong. Through stake taking in Jiangsu Jiaolong, the Group will obtain the synergy not only for the salvage service performed by Jiangsu Jiaolong, but also the extended client network representing an enhanced arm of contract negotiation. These factorswill improve the Group’s capacity of seizing new contracts.
Dredging Today Staff, March 4, 2012