A Qatar sovereign wealth fund has emerged as the mystery investor in China's Yangzijiang Shipbuilding.

A Qatar sovereign wealth fund has emerged as the mystery investor in YangzijiangIn April an unnamed Middle East investor agreed to subscribe to 83.5m new shares in the Singapore-listed Chinese shipbuilder at SGD1.29 a share.

The proceeds were intended to help fund a planned acquisition of PPL Holdings, which controls a 15% stake in Singapore's PPL Shipyard.

Yangzijiang is leading a consortium, which includes the Qatari fund, to buy PPL Holdings for $155m from Singapore-listed oil and gas company Baker Technology Ltd.

But the fund, QD Asia Pacific Ltd, has now agreed to subscribe to the 83.5m new shares irrespective of the outcome of the proposed PPL Holdings acquisition.

Yangzijiang said the net proceeds would be used to acquire future targets in the shipbuilding and marine offshore industries.

The share placement will leave QD Asia Pacific, a wholly-owned subsidiary of Qatari Diar Real Estate Company, with a 2.235% stake in Yangzijiang.

"Yangzijiang welcomes Qatari Diar as a valued investor, and expects that Qatari Diar's investment will serve as an excellent platform for Yangzijiang to extend its reach into Middle East region by tapping into Qatari Diar's network," said Yangzijiang executive chairman Ren Yuanlin.