Anyang Iron & Steel, the listed unit of the mainland's 13th-largest steelmaker, plans to buy 3.15 billion yuan worth of assets from its parent as part of the parent's plan to inject all its operating assets into the publicly traded arm.
Mainland-listed steelmakers are stepping up efforts to streamline operations and expand capacity by purchasing assets from their parents and building new plants.
Baosteel Group, Anshan Iron & Steel and Wuhan Iron & Steel Group have completed asset injections into their respective listed arms to pave the way for expansion.
Anyang Steel will issue up to 377.25 million new shares at 8.35 yuan each to Anyang Iron & Steel Group, its state-owned parent, to settle the deal, the Henan-based steelmaker said yesterday.
The deal will boost Anyang Group's stake in the listed company to 60.14 per cent, from 52.69 per cent.
The assets include a 78.14 per cent stake in an iron-making plant, a blast furnace, a steel machinery manufacturing plant and a construction firm.