Liu Jichun, a Chinese entrepreneur, is seeking to gain control of Xin Yuan Asphalt Tanker Company (Xin Yuan Enterprises). His cash offer amounts to HKD 771 million (USD 99 million).
Details of the Acquisition Offer
Liu's investment company, Ocean Vivo, has announced a voluntary cash offer of HKD 2.21 per share for Xin Yuan's shares that it does not currently own. This price represents a 25.57% premium over Xin Yuan's last closing price of HKD 1.76 recorded on February 20, 2025, after which trading was suspended.
Liu Jichun's Background
Liu Jichun, an experienced figure in China's shipping industry, previously served as the president of Tianjin Swast Maritime from 2015 to 2021 and is currently the director of SunRise Marine, which operates in asphalt tankers, very large gas carriers, and very large ethylene carriers.
The proposed merger between Xin Yuan's asphalt tanker chartering business and Liu's existing shipping interests is likely to lead to collaborations and potential changes in the company's asset structure. Xin Yuan has previously entered other markets and in 2019 acquired two second-hand bulk carriers, including the 177,000-ton Shinyo Diligence.
This acquisition offer is contingent upon the resumption of Xin Yuan's stock trading, which has been suspended since February 2025 due to allegations against the company and some of its executives. The current deadline to meet this prerequisite is set for October 30, although the buyer may extend this time. Sufficient acceptance from shareholders is required to confirm this offer so that Liu and his associates hold over 50% of the voting rights.
Singapore-based Pioneer Logistics Holdings is seeking to exit its indirect investment in Xin Yuan as part of this proposed deal. Another investor, Danube Bridge Shipping associated with Abraj Capital, intends to continue its investment.
Ocean Vivo plans to maintain Xin Yuan's listing in Hong Kong.
