Yangzijiang Shipbuilding buys 10% stake in maritime company from Canada’s Fairfax for US$825.7 million

[SINGAPORE] Shipbuilder Yangzijiang Shipbuilding will buy a 10 per cent stake in a maritime holding company for US$825.7 million from Canadian investment firm FairFax Financial.

This translates to about 29.2 million shares of Poseidon Corp, an indirect parent company of Seaspan Corporation, the world’s largest owner and operator of container ships.

Announcing the acquisition in a bourse filing on Tuesday (Mar 10), Yangzijiang Shipbuilding said this move would strengthen the group’s strategic relationship with Seaspan Corporation and support closer long-term collaboration.

The investment also supports vertical integration along the value chain and enhances alignment between vessel demand and the group’s production planning and yard development strategy – a factor Yangzijiang Shipbuilding’s board considers important for advancing the company’s interests.

This will also mean that Yangzijiang Shipbuilding will have closer access to end-market dynamics, enabling better market intelligence and responsiveness to customer demand.

The acquisition also seeks to optimise the group’s deployment of surplus funds in a long-term strategic investment with relatively stable return characteristics.

Based on the latest unaudited financial statements of Poseidon as at Dec 31, 2025, the book value of 10 per cent of its equity is about US$459 million; the net tangible asset value for the same stake translates to about US$452 million.

Yangzijiang Shipbuilding’s financial advisor Kroll had estimated the acquired stake to be worth between US$660.6 million and US$810.9 million.

While the agreed-upon sale price is above the valuation range estimated by its financial advisor, the company’s board took into account the broader strategic and commercial benefits of the acquisition. These include the strengthening of long-term alignment with a significant customer, enhancing vertical integration and improving order visibility.

The shipbuilder said in the filing: “The board is of the view that these strategic considerations, when assessed together with the financial evaluation, justify the consideration and are in the interests of the company and its shareholders as a whole.”

Yangzijiang Shipbuilding is taking part in the broader transaction of Poseidon Corp – up to 34 per cent of its equity – as a minority investor.

According to reports, Fairfax Financial is selling a portion of its stake in Poseidon Corp – 67.6 million shares – for US$28.30 each, bringing the total sale to US$1.9 billion.

Another investor participating in the transaction is Hengyuan Asset Investment, the private investment vehicle of Yangzijiang Shipbuilding’s executive chairman and chief executive officer, Ren Letian.

He will acquire a 5 per cent stake in Poseidon Corp on largely the same terms as his company.

Shares of Yangzijiang Shipbuilding fell 1.2 per cent, or S$0.05, to close at S$4.05 on Tuesday.