Samsung Heavy Selling Shares to Raise Fresh Funds

SHI South Korean shipbuilder Samsung Heavy Industries (SHI) is looking to raise up to KRW 1.14 trillion (USD 997 million), according to the companys stock exchange filing. Namely, the shipbuilder said that it would issue over 159,1 million shares at a price of KRW 7.1 per share, starting on November 7. The stocks would be listed on the local stock market on November 28, according to Yonhap News Agency. The announcement comes on the back of Samsung Heavy Industries report of a profitable third quarter of 2016 as the shipbuilders net income stood at KRW 128.6 billion during the period, representing a turnaround compared to a net loss of KRW 212.4 billion seen in the second quarter of the year. SHIs operating profit for the third quarter was at KRW 84 billion, up from an operating loss of KRW 283.3 billion recorded three months earlier. The companys turnaround follows a number of cost-cutting measures introduced as part of its self-rescue plan, revealed in June this year. Within the KRW 1.5 trillion reorganization scheme, the shipbuilder decided to make the necessary workforce cuts and required a return of part of the salaries from its executives. World Maritime News Staff