- Thursday 2010-03-11 18:02
Hebei Iron and Steel Group will buy a 80 percent stake in Shijiazhuang Iron and Steel for 1.9 billion yuan from CITIC Pacific (0267.HK), reports China Business News, citing Yan Shengke, chairman of Shijiazhuang Iron and Steel.
Wang Yifang, Chairman of Hebei Iron and Steel Group, has confirmed the stake purchase.
CITIC Pacific had acquired a 80 percent stake in Shijiazhuang Iron and Steel in 2005 for 1.48 billion yuan. It has annual specialty steel production capacity of more than seven million tons at present, accounting for 40 percent of China’s overall specialty steel production capacity, turning the company into the largest specialty steel group in China.
The remaining 20 percent stake in Shijiazhuang Iron and Steel is currently held by Hebei State-owned Asset Management Administration.
In 2009, Shijiazhuang Iron and Steel produced 1.84 million tons of steel and 1.75 million tons of steel products. Sales revenue hit 6.68 billion yuan and pre-tax profit totaled 220 million yuan.
According to Wang, Hebei Iron and Steel Group will inject Shijiazhuang Iron and Steel into its listed subsidiary, Hebei Iron and Steel (000709), at an appropriate time.
