Chinese shipping entrepreneur Liu Jichun has launched a voluntary conditional cash offer worth up to HK$771m ($99m) for control of Hong Kong-listed asphalt tanker operator Xin Yuan Enterprises, valuing the company's entire equity at approximately HK$972.4m ($125m).

Liu's investment vehicle Ocean Vivo is offering HK$2.21 per share for the stock it does not already own, according to a joint announcement filed with the Hong Kong Stock Exchange. Ocean Vivo and parties acting in concert already control 20.71% of Xin Yuan, a stake built through off-market share purchases in March and July, and the offer covers the remaining 79.29%.

The price carries weight. At HK$2.21 per share, the bid represents a 25.57% premium to Xin Yuan's last closing price of HK$1.76, recorded on February 20, 2025, before trading was suspended.

Who is behind the bid?

Liu is a veteran of China's shipping sector. He chaired Tianjin Southwest Maritime between 2015 and 2021 and currently heads Sunrise Marine, whose interests span asphalt tankers, very large gas carriers and very large ethane carriers.

The proposed combination would bring Xin Yuan's asphalt tanker chartering business alongside Liu's existing shipping interests. The buyer has indicated plans to explore cooperation with Xin Yuan and potential changes to the company's asset structure.

For Xin Yuan's shareholders, the offer presents a clear exit at a premium. Singapore-based Pioneer Logistics Holdings is looking to exit its indirect investment in Xin Yuan as part of the proposed transaction. Another investor, Ebridge Capital-linked Danube Bridge Shipping, intends to retain its exposure. Ocean Vivo plans to retain Xin Yuan's Hong Kong listing.

What does Xin Yuan bring to the fleet?

Xin Yuan operates 10 vessels with an aggregate capacity of approximately 92,000 dwt. The employment profile is weighted toward period cover:

• Seven vessels are on time charters.
• Three trade on voyage charters or contracts of affreightment.
• Two asphalt tanker newbuildings are scheduled to join the fleet in the fourth quarter of 2026.

The two newbuild deliveries give the buyer a growth pipeline in a niche segment, extending the fleet's capacity just as the combination with Liu's gas and ethane carrier interests takes shape.

The company has previously ventured beyond asphalt shipping. In 2019 it moved into the capesize market, acquiring two secondhand bulkers, including the 177,000 dwt Shinyo Diligence from Fred Cheng's Shinyo International.

What stands between Liu and control?

The takeover remains conditional on Xin Yuan resuming share trading. Trading has been suspended since February 2025 following allegations concerning the company and certain directors.

The current deadline for satisfying that precondition is October 30, although the buyer can extend it. Once trading resumes, the offer would require sufficient shareholder acceptances to give Liu and his associates more than 50% of voting rights.

That dual hurdle — regulatory reinstatement of the shares plus majority acceptance — means the HK$771m outlay is far from certain to be triggered in full. An extension of the October 30 deadline would push the timetable into 2026, the same window in which Xin Yuan's two asphalt tanker newbuildings are due for delivery.

If the conditions clear, the deal would consolidate a 12-vessel asphalt tanker platform under an owner with established gas carrier interests, and Xin Yuan's minority shareholders will have had a 25.57% premium as their price for patience through a year-long trading suspension.