Shipyard shares down on acquisition concern

Guangzhou Shipyard International Co fell as much as 8.9 percent in Shanghai trading on concern earnings per share may be diluted by a stock sale to fund the purchase of affiliate Guangzhou Wenchong Shipbuilding Ltd.

The shares, down 71 percent this year, fell 6.8 percent to close at 23.54 yuan on the Shanghai Stock Exchange. The Hong Kong market, where the stock also trades, was shut for a holiday.

The purchase of the Wenchong yard from parent China State Shipbuilding Corp will allow Guangzhou Shipyard to double production capacity and expand into smaller container vessels.