AVIC International Investments, the ship trading arm of large Chinese state-owned AVIC International Holding Corporation, is trying to list in Singapore by taking over the listing status of beleaguered Sino-Environment Technology Group, local media reported on Thursday.
Diao Weicheng, chairman of AVIC International Investments, said that the company has been earning good profits and that he was expecting double-digit growth in the revenue of the company on the back of strong orders, the Business Times reported.
"We will enhance our capabilities and competitiveness in trying to win more orders from the market," he said.
Diao said the revenue of AVIC International Investments more than tripled to 76.5 million yuan (12 million U.S. dollars) in 2010 from 24.6 million yuan (3.8 million U.S. dollars) in 2009. Net profit surged from 18.6 million yuan (2.9 million U.S. dollars) to 56.1 million yuan (8.8 million U.S. dollars).
The judicial manager of Sino-Environment has outlined a swap proposal of 4 shares in AVIC International Investments for every 1, 000 Sino-Environment shares.
Some of the analysts have said that the shareholders are at least getting something.
Diao said a listing through the reverse takeover is a clean and simple way to list in Singapore.
Sino-Environment and AVIC International Investments signed an implementation agreement in January under which the latter will issue 6 million dollars worth of shares in the company to the creditors and shareholders of Sino-Environment.
AVIC International Investments now provides management and consultancy services to Chinese and international ship owners. It will expand its capabilities to ship building by acquiring three existing shipyards under the AVIC International Holding Corporation in the next two years. It also plans to acquire or partner ship design houses to develop environmentally friendly and higher value-added vessels such as oil tankers, chemical tankers and offshore vessels.