Angang gets the go-ahead for issue

PUBLISHED : Thursday, 09 March, 2000, 12:00am
UPDATED : Thursday, 09 March, 2000, 12:00am

The China Securities Regulatory Commission (CSRC) will allow H share Angang New Steel to issue 1.5 billion yuan (about HK$1.4 billion) of convertible debentures.

Shareholders at the company's extraordinary general meeting had approved the proposed issuance of two billion yuan worth of debentures.

The debentures will be issued only to subscribers in the mainland, including A shareholders other than Angang Holdings, which now holds 52.57 per cent of the company.

The debentures will mature in five years.

The H share said it also would apply as soon as possible to the Shenzhen Stock Exchange, on which Angang New Steel's A shares are traded, for the listing of the convertible debentures.

Because of the lesser amount of funds approved by the CSRC, the company said it would not use part of the proceeds to improve the existing production facilities at its thick plate plant, as had been planned.

Angang New Steel considers that the cancellation of the initial proposal will not have a material adverse impact on overall production at the plant.

As at September 30 last year, the company had assets totalling 7.07 billion yuan, with its total liabilities reaching 1.78 billion yuan, according to mainland accounting standards.

Angang New Steel's net profit amounted to 146.52 million yuan for the first nine months of last year, compared with 123.77 million yuan for the 12 months to December 31, 1998, again using mainland accounting principles.