SINGAPORE (THE BUSINESS TIMES) - Yangzijiang Shipbuilding's proposed spin-off of its investment segment has been approved by shareholders with an approval rate of 100 per cent, the group announced on Wednesday (April 20).

Yangzijiang Financial Holding (YZJFH) will therefore proceed to list on the Singapore Exchange under the ticker symbol YF8 at 1pm on April 28.

On the same day, YZJFH will be added to the Straits Times Index (STI) with the same investable weight as Yangzijiang Shipbuilding.

It will also be added to the FTSE ST Mid Cap Index, FTSE ST China Index and FTSE ST All-Share Index.

Yangzijiang Shipbuilding's distribution date will take place on April 27. Its last trading day on a cum-distribution basis is April 21, with shares of the group to trade on an ex-entitlement basis the day after.

The group will remain on the STI at an unchanged investable weight.

STI constituents will be ranked by full market capitalisation on April 28, and the smallest constituent will be removed from the index effective May 5.

Mr Ren Letian, executive chairman and chief executive of Yangzijiang Shipbuilding, said the "overwhelming (shareholder) support" received at the April 18 extraordinary general meeting affirms that the group's shareholders and investors see "deep value" in both Yangzijiang Shipbuilding and YZJFH.

"We will continue to strengthen our competitive advantages and seek specialised growth for both entities to ensure sustainable returns for our shareholders," he said.

YZJFH will be helmed by Mr Ren's father, Ren Yuanlin.

Directors of Yangzijiang Shipbuilding endorsed the proposed spin-off early this month after concluding that the move's tangible economic benefits to shareholders are "substantial, quantifiable and clearly achievable".

They believe the spin-off and listing of YZJFH will help to reduce any possible conglomerate discount, as the value of the separate businesses and assets will be "better reflected" and "unlocked".

Shares of Yangzijiang Shipbuilding were trading six cents, or 3.8 per cent, lower at $1.54, after the news.