September 07, 2008

Angang supports Panzhihua Steel overall listing as third party

China Business News reported that Chongqing Titanium Industry Company Limited declared that Angang will be the cash option right third party in the group's assets restructuring, suggesting that Pangang and Angang are going into substantial cooperation.

On April 14th 2008, Panzhihua Steel & Vanadium Company Limited, Chongqing Titanium Industry Company Limited and Chang Cheng Special Steel Company Limited, three listed units of Pangang, all announced approval of the group's overall listing by the state owned asset supervision and administration commission. The three listed units will be incorporated into Panzhihua New Steel & Vanadium Company Limited, with Chongqing Titanium Industry and Chang Cheng Special Steel to logout.

Pangang will then put all iron and steel, vanadium, titanium and minerals resource assets into Panzhihua New Steel & Vanadium Company Limited and realize overall listing by right of this platform. If any particular shareholders refuse to accept holistic listing for any assets shrink concerns or being pessimistic toward the prospect of overall listing, they can choose to sell stake to the third party Angang.

Panzhihua Steel & Vanadium Co had proclaimed signing of a pact on offering Angang third party cash option right. As agreed, Angang will unconditionally buy the shares of the three listed units' holders who want to sell, at CNY 9.59 per share for Panzhihua Steel & Vanadium Co, CNY 14.14 per share for Chongqing Titanium Industry and CNY 6.50 per share for Chang Cheng Special Steel.

Analysts said that Pangang and Angang have often collaborated before and are supportive to each other. With Angang being the third party, investors will also be confident in success of Pangang's overall listing. Additionally, this is a union between two strong steelmakers that can give the listing a push.

(Sourced from MySteel.net)