Wedoany.com Report-Oct. 11, Ren Yuanlin, founder of Yangzijiang Shipbuilding, is spearheading the acquisition of Shanshan Corp, a prominent supplier of lithium battery anode materials. The deal involves a consortium led by Ren purchasing a majority stake in the company, following a court-mandated asset restructuring for its parent entity, Shanshan Group, based in Shanghai.

The investment group, coordinated by Ren, is investing RMB 3.2 billion ($450 million) to secure 23.3% equity in Shanshan. This transaction aims to stabilize the firm's operations and support its growth in key sectors. Shanshan holds a significant 21% share of the global market for lithium battery anode materials and leads with a 30% share in the production of display panel polarizing film.

Shanshan Corp, established in 1992, specializes in materials essential for new energy applications, batteries, and electric vehicles. Its products serve both domestic and international clients in energy storage and display industries. The acquisition marks Ren's initial involvement in the lithium battery anode and polarizing film sectors, diversifying his portfolio beyond shipbuilding.

Yangzijiang Shipbuilding originated from the Jiangyin Shipbuilding Factory, founded in 1956 as a modest facility along the Yangtze River. Ren began his career there in the 1970s as a technician, progressively advancing through various roles. In 1999, during broader enterprise reforms, he orchestrated a management buyout that converted the yard into a private company, laying the groundwork for the contemporary Yangzijiang Shipbuilding Group.

Guided by Ren's direction, the enterprise evolved from a localized repair operation into China's foremost private shipbuilding firm. It achieved a milestone by listing on the Singapore Exchange in 2007, becoming the initial Chinese shipyard to enter overseas public markets.

The restructuring process includes phased share acquisitions through an investment platform. In the first stage, the consortium and partners are obtaining 223.31 million shares at RMB 11.44 ($1.61) each, equating to 9.93% of Shanshan's total shares. Ren's group is providing RMB 1.02 billion ($143.27 million) for a 40% stake in this platform. Additional shares and voting rights from retained holdings will consolidate control at approximately 23.36%.

This move leverages the consortium's reorganization expertise, Shanshan's market standing, and participants' sector knowledge to fortify ownership stability and enable sustained expansion via capital, operational insights, and networks.

The transaction had a limited effect on Shanshan's stock, which closed 2% lower at CNY 15.57 ($2.18). It positions Ren to integrate his financial acumen from Yangzijiang Financial into emerging technologies, aligning with economic recovery trends and opportunities for enduring returns.

Through this venture, Ren extends his legacy of transforming enterprises, now bridging shipbuilding prowess with advanced materials innovation. The partnership promises to enhance Shanshan's competitiveness, fostering advancements in sustainable energy solutions.