By Saurabh Chaturvedi
SINGAPORE--Singapore-listed rig builder Sembcorp Marine Ltd. (S51.SG) said Tuesday it agreed with China Ocean Shipping (Group) Co. to sell its 30% stake in Cosco Shipyard Group for 1.06 billion yuan (about $155 million).
The company intends to use net proceeds from the proposed sale for its working capital, Sembcorp Marine said in a filing to Singapore Exchange.
Sembcorp will cease to have any direct interest in Cosco Shipyard Group after the stake sale. But it has a 4.98% holding in Cosco Corporation (Singapore) Ltd. (F83.SG), which in turn has a 51%interest in CSG.
Cosco Shipyard's businesses include ship repair, conversion and shipbuilding in China. The company owns six major shipyards located in major coastal cities.
Write to Saurabh Chaturvedi at firstname.lastname@example.org
(END) Dow Jones Newswires
November 15, 2016 06:13 ET (11:13 GMT)
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