Shipyard Due Diligence Study

Background

• A sovereign wealth fund had plans to become a cornerstone equity investor when the company was listed on an Asian stock exchange. Drewry was approached to conduct detailed due diligence of the company and forward outlook for the shipyard.

Client Objectives

• To undertake commercial, financial and technical due diligence of the target shipyard engaged in building dry bulk, liquid bulk, container and offshore vessels

• To assess the ability of the shipyard to deliver the vessels on order

Approach

• Provision of market review of global shipbuilding market specifically focussed on China, Japan and S. Korea
• Undertook detailed site visit and review of shipyard plans

Results achieved

A thorough due diligence of target shipyard was completed covering:

• Competitive analysis of target shipyard
• Growth strategy of major shipyards vis-à-vis target shipyard
• Technical due diligence of the target yard
• Providing independent risk assessment of the yard
• Valuation of the shipyard

Due to dynamic market conditions at the time, the client withdrew pursuing an investment in the shipyard