It is reported that after the check of China Securities Regulatory Commission, Gansu Jiu Steel Group Hongxing Iron & Steel Co Ltd recently absorbed the core assets of Jiuquan Iron & Steel Co Ltd by adding 1,172,078,712 shares to the later at CNY 5.79 per share.
Through the about CNY 7 billion private placement transaction, Jiuquan Steel was improved to control 83.74% of its listed subsidiary, which means the steel group will go full floating smoothly in future a source in securities industry noted. At the same time the business enlarged Hongxing Steel from 3.6 million tonnes per year capacity of steel products to 7 million tonnes per year largely improve its competitiveness. Besides, the subsidiary also eyed capacity of pig iron and crude steel improving respectively from 6 million tonnes per year and 7 million tonnes per year to 7 million tonnes per year and 8 million tonnes per year.
Analyst of Galaxy Securities said “This year is the high time of merge and acquisition in steel sector, since the evaluation of stocks in steel industry lingered on low level in the first half of this year.”
(Sourced from MySteel.net)
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