In the announcement, Yangzijiang stated that the claimants are seeking US$835 million, comprising the loss of bargain, loss of profits and refund of the payments made by the claimant.
DBS Group Research has kept its “buy” call with an unchanged target price of $2.88 on Yangzijiang Shipbuilding after the Mainboard-listed group said it stands a “reasonably good prospect of success” against arbitration proceedings levelled against three of its wholly-owned subsidiaries.
On Oct 12, Yangzijiang Shipbuilding announced that one of its customers had commenced arbitration proceedings on June 10, 2022, and Sept 26, 2022, pertaining to the cancellation of 10 shipbuilding contracts amounting to US$900 million ($1.18 billion) which were entered into in November and December 2021.
