“This is a natural evolution of our strategy,” says Ren Yuanlin

Yangzijiang Financial Holding on April 27 says it is exploring the possibility of spinning off its maritime investments segment into a separately-listed entity on the mainboard of the Singapore Exchange S68, reiterating what The Edge Singapore reported on Feb 27, following an interview with executive chairman Ren Yuanlin.

"Yangzijiang Financial's maritime investment business has high growth potential. The profitability of this segment may be even greater if it's a standalone," Ren told The Edge Singapore back then.

see also: Yangzijiang Financial mulls spin-off to strengthen Singapore presence

The spin-off listing will be by way of introduction and is targeted for completion in 6 to 12 months' time.

The new entity will focus on unlocking value across the entire maritime value chain from finance leasing and brokerage services to broader investment participation. Ren will lead the new entity.

The remaining group, meanwhile, will continue its focus on funds, diversified asset management capabilities, and investment operations.

Yangzijiang Financial says the spin-off will improve capital allocation and streamlined decision-making as well as clearer governance.

Both entities will be better equipped to pursue sector-specific partnerships, co-investments, and capital-raising initiatives.

"This is a natural evolution of our strategy," says Ren in a statement on April 27. "Our maritime business is ready to stand on its own, backed by strong fundamentals and a clear vision for expansion.

"By separating our maritime segment from Yangzijiang Financial's investment platform, we will be better positioned to pursue focused growth while delivering enhanced value to shareholders," he adds.

The spin-off is managed by SAC Capital and will be subject to the usual regulatory and shareholders' approvals.

Yangzijiang Financial shares closed at 70 cents on April 25, up 1.45% and is up 70.73% year to date.