CONTIOCEAN (02613) has announced that the bidding process concluded successfully on August 28, 2026. Subsequently, on September 1, 2026, the seller, Shanghai Electric Yan Concrete (Rugao) Construction Technology Co., Ltd., entered into a formal contract with the buyer, CONTIOCEAN (Jiangsu) Marine Equipment Manufacturing Co., Ltd., a wholly-owned subsidiary of the company that emerged as the winning bidder.
Under the terms of the agreement, the seller will transfer ownership of the land use rights, along with the property and equipment situated on it, to the buyer for a consideration of approximately RMB 78.47 million (excluding taxes). The land, located at No. 6 Kangye Road, Changjiang Town, Rugao City, Nantong City, Jiangsu Province, covers an area of approximately 67,736 square meters. Based on all reasonable inquiries made by the directors, the remaining lease term for the land is approximately 43 years, expiring on January 21, 2069.
The property, built in 2021, occupies a total site area of roughly 37,930.77 square meters. It comprises office buildings, factory workshops, and a security room, all detailed in the online trading system list. Additionally, the equipment included in the acquisition consists of a set of auxiliary facilities and 20 bridge cranes, also as per the system listing.
Where to begin with the strategic rationale? The board believes that, given the location of the land and property in Nantong—a region renowned for possessing one of the most developed shipbuilding and marine equipment supporting industries in the Yangtze River Delta and across China—this acquisition highlights significant clustering advantages for high-end equipment manufacturing. The primary objective of this move is to expand the group's production capacity, aligning directly with the company's fundraising goals and the designated use of the proceeds.
Beyond capacity expansion, this acquisition will enable the company to deliver efficient and high-quality professional support services, substantially boosting its high-end manufacturing capabilities and market responsiveness. Consequently, the board considers the transaction to be fair and reasonable, and in the best interests of the company and its shareholders as a whole.
Comments