Arcelor-Mittal's Chinese partnership issues new shares

Chinese steelmaker Hunan Valin Steel Tube & Wire Co Ltd - 30.29 percent of which belongs to Hunan Valin Group, with 29.48 percent owned by Mittal Steel - has announced that the company is to issue 520 million additional A-shares with a minimum value of RMB 4.47 per share. The shares are to be distributed among the two largest shareholders of the company: Hunan Valin Group will buy 50.67 percent of the new shares, while Mittal Steel will buy 49.43 percent. The company is expected to obtain RMB 2.3 billion ($297.16 million) in revenue through the share-sale, which will be used to buy assets from the parent company Hunan Valin Group and to invest in capacity expansion. The share-sale means that both Hunan Valin Group and Mittal Steel will increase their stakes in the company. However, any significant change in the ownership structure of the company is not expected.