ANSC buys out ANSI

ANSC buys out ANSI

SteelOrbis Shanghai The China Securities Regulatory Commission and the Hongkong Securities and Futures Commission has recently approved Angang New Steel Company's (ANSC) plan to buy out Anshan New Iron and Steel Company (ANSI) shares from the parent company Angang Group. According to the agreement, ANSC will pay RMB 4.29 ($0.53) for each ANSI share. The total amount for the 2.97 billion shares will reach RMB 6.951 billion ($862 million) and will be paid in installments within three years. With the ANSI takeover, Liaoning based ANSC will be transformed into an integrated heavy metal producer. After the completion of the purchase, ANSC's crude steel production capacity will increase from the current 3 million metric tons to 11 million metric tons, and finished steel capacity from 5.8 million metric tons to 10.2 million metric tons. Furthermore, after the completion of its western projects this year, the company's crude steel production capacity will reach 16 million metric tons. In May 1997, Anshan Group had separated its mills of CR sheet, heavy plate, wire rod, large plant and No. 1 steel-making plants to establish the ANSC Company.