Hebei Iron and Steel by open and fund-raising 16 billion

Hebei Iron and Steel Corporation's overall market movements, to go further. However, the bad news is: Hebei Iron and Steel would need 16 billion yuan through public offering and fund-raising.

    The company announced on last night, to be not more than 3.8 billion public offering of shares of A shares and fund-raising 16.015 billion yuan, the acquisition of the company's shareholders Handan Iron and Steel Group Co., Ltd. held by Han Bao Steel Co., Ltd. 100% equity.

    Concern is to calculate the program, its issue price of about 4.21 yuan / share, below its closing price of 3.93 yuan before the suspension is also a premium of approximately 7%. At present, the major shareholder of Hebei, Hebei Iron and Steel Iron and Steel Group Co., Ltd. has been committed, Hebei Iron and Steel Group and / or subsidiary companies will be subscribed in cash involved, the number of shares of this total no less than 50% of the total number of issued shares.

    Specifically, Hebei Iron and Steel Group and Handan Iron and Steel Group Co., Ltd. affected by Hebei control. Han Bao company's main products are hot-rolled coil and cold rolled coil, and Hebei Iron and Steel are engaged in business there are some intra-industry competition. Interests of listed companies in order to avoid possible damage, Hebei, Hebei Iron and Steel Iron and Steel Group had consolidated Handan Iron & Steel Co., Ltd. convertible absorption and Chengde Xinxin Vanadium and Titanium Co., Ltd. promised absorption in convertible within three years after completion of the merger will be Han Po company into the listed company.

    The Han Bao registered capital of 12 billion yuan, is the Hangang New Area project investment and management entities, Hangang New Area project in Hebei Province "Eleventh Five-Year" period of restructuring the steel industry landmark projects. The company's product positioning is now more a shortage of domestic steel, auto plates, appliance panels high value-added products, Hebei Iron and Steel Group is the most high-quality steel core business assets.

    As of March 31, 2010, the end of 2009, the net assets of 120 billion yuan and 11.9 billion, total assets were 30.4 billion yuan and 23.8 billion yuan; in 2010 from January to March, 2009, revenues were 4 billion yuan and 115 yuan, net profit was 112 million yuan and 273 million yuan.

    Hebei Iron and Steel last night, said the acquisition is completed, will fundamentally solve the Han Bao between the company and the company's competition with the industry to help increase the independence of the company's business operations, improve governance.

    It is worth mentioning that the industry generally believe that this means that Hebei Iron and Steel continue to accelerate the pace of the overall market.

    Obvious that the original convertible Hebei Iron and Steel Group Handan Steel and Chengde merger by absorption into the Vision Shihai commitment Steel Group, Shougang Jingtang Wuyang steel and the company's main iron and other assets.

    Held in respect of the previous listed company secretaries to directorate joint meeting of Hebei Province, the company's executives have said, Hebei Iron and Steel Group M & A results show, the next step will be all steel core business assets into the listed company to be listed.

    Hebei Steel, according to the annual reports of 2009, the year the company produced 23.35 million tons of pig iron, up 17.69 percent; production of steel 23.03 million tons, up by 8.14%; produced 20.7 million tons of steel, up