Ningbo state fund launches $16M tender offer for 6% of Long Yuan Construction Group
What's the deal? Ningbo Kaihai Self-Owned Capital Investment Development, a newly formed state-backed vehicle, has launched a partial tender offer for 91,786,000 shares of Long Yuan Construction GroupDealroom has a profile for this one. Try Dealroom → (600491.SH, "ST Longyuan"), equal to 6% of the company. The offer is priced at RMB 1.25 per share in cash, capped at RMB 115 million (about $16 million). It runs from July 28 to August 26, 2026.
Who's buying? Kaihai Investment was incorporated on July 2, 2026, and has no operations yet. It is owned by Ningbo Development & Investment GroupDealroom has a profile for this one. Try Dealroom → (60%) and Ningbo Xiangshan Marine Industry Investment Group (40%), and is ultimately controlled by the Ningbo State-Owned Assets Supervision and Administration Commission.
The backer's numbers: Controlling shareholder Ningbo Kaitou holds assets exceeding RMB 160 billion and posted net profit of more than RMB 5.4 billion in 2025. The full offer amount has been deposited as a performance guarantee with the depository's Shanghai branch, funded entirely by paid-in capital.
What's the endgame? This is a partial offer, not a bid for control or a move to delist ST Longyuan. If fully subscribed, Kaihai would hold 6% and would not become a controlling shareholder. The stated aim is to affirm the company's value and support its development.
Why now? The RMB 1.25 offer price equals the arithmetic average of the weighted-average price over the past 30 trading days. That pricing offers a near-market reference point and could provide short-term support for the stock.
What changes? Kaihai and its parent pledged to keep ST Longyuan's assets, staff, business, operations, and finances independent. It listed no plans over the next 12 months to adjust the main business, restructure assets, change management, or alter dividend policy. Financial adviser Yongxing Securities called the deal lawful and adequately funded; law firm Beijing Dentons (Ningbo) confirmed the disclosures were accurate and complete.
What could go wrong? Shareholders choose whether to accept. If tendered shares exceed the cap, Kaihai will buy on a pro-rata basis, which may leave odd lots. Completion and later performance still hinge on policy shifts, market conditions, and company fundamentals.
The signal: The offer marks the entry of local state capital into a distressed listed builder, a signal of official confidence at a delicate stage. For investors, the near-market price and explicit no-delisting stance frame this as a stabilising move rather than a takeover.
Read more: Minichart
