Baosteel considers more buyback on falling stock prices

Friday, 14 October 2005 11:16:03 (GMT+3)   |  
       

Baosteel considers more buyback on falling stock prices

The stagnant market in China caused Baoshan Iron & Steel Company's (Baosteel) stock price to drop 17 percent since its listing on the stock exchange in April. Baosteel's stocks were listed on the stock exchange as a part of the Beijing's program to release the stocks of certain state-owned companies in order to reduce the burden on the government's shoulders. Baosteel has spent nearly $250 million to date buying back some of its shares. Yesterday, Baosteel indicated that its parent company was ready to spend another $250 million to buy back stocks over the next six months if the price remains below RMB 4.53 ($0.56) per share. The stock price of the company gained 0.95 percent after the announcement to close at RMB 4.26 ($0.53). If the company spends the other $250 million, the total buyback will reach 900 million shares. The company had listed 5 billion shares on Shanghai Stock Exchange on 26 April 2005 with an initial price of RMB 5.12 (0.63$).

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