Yangzijiang Shipbuilding (Holdings) Ltd. has announced its acquisition of a 10% equity interest in Poseidon Corp. through agreements with affiliates of Fairfax Financial Holdings and the Washington Family. The acquisition, valued at $825.7m, is part of a broader transaction involving the sale of up to 34% equity interest in Poseidon. This strategic move aims to bolster Yangzijiang’s relationship with Seaspan Corporation, a key customer, and enhance its market intelligence and production planning.
Poseidon Corp., a Marshall Islands-based holding company, owns Seaspan Corporation Pte. Ltd., which operates containerships on long-term charters. The acquisition will allow Yangzijiang to integrate more closely with its supply chain and improve its responsiveness to market demands. The investment is also seen as a strategic deployment of surplus funds, offering stable returns.
The consideration for the acquisition was determined based on several factors, including Poseidon’s financial performance and strategic value. Despite the price exceeding the valuation range provided by independent adviser Kroll, Yangzijiang’s board believes the long-term benefits justify the investment. The acquisition is subject to customary conditions, including regulatory approvals and the execution of a shareholders agreement granting Yangzijiang a board seat and minority protections. Completion is expected following the satisfaction of these conditions.
