Baosteel may spend RMB 4 billion for Baoshan shares
China's Baoshan Iron and Steel reported that its parent company Shanghai based Baosteel Group would spend RMB 4 billion ($493.5 million)to buyback Baoshan's shares if the stock price of the company falls beneath RMB 4.53 ($0.56). Baosteel Group was actually planning to spend RMB 2 billion ($246.8 million) in the buyback program. The capital increase allocated for the stock purchase aims to soften the fall in Baoshan's stock prices. State-owned Baoshan Steel had offerend 5 billion shares in Shanghai stock exchange on April 26, 2005 with RMB 5.12 ($0.63) stock price. Baoshan also reported that they would offer mininmum RMB 3.2 ($0.39) dividend in cash for each 10 shares held each year before 2008. Baoshan Iron and Steel is among the 46 state-owned companies chosen to sell state-owned shares as part of a privatization reform program.