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.
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(END) Dow Jones Newswires
November 15, 2016 06:13 ET (11:13 GMT)
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