Baoshan gets approval for Yuan 1.9 billion take over
China's major steel producer Baoshan Iron and Steel reported that their proposal to take over the shares in Yichan Steel Sheet Pte Ltd, Lubao
Pipe Pte Ltd and other subsidiaries has received approval from the board. Take over of 79.82% share in Lubao
Pipe and 55.07% share in Yichan Steel Sheet will cost Yuan 989 million, where total cost is estimated as Yuan 1.9 billion together with acquisition of balance shares from other shareholders of the aforecited companies. Merger with Yichan Steel Sheet will be realized within a year following the completion of share take over.
Baoshan stated that with this transaction they are aiming to optimize resources, avoid competition in steel industry and improve efficiency.