Zhejiang Province-based Chinese steelmaker Hangzhou Iron and Steel Co. (Hangzhou Steel) has announced that its second-largest shareholder Baowu Group plans transfer 394,611,555 shares in Hangzhou Steel to Beijing-based Chengtong Metal Holdings Co., Ltd, and to transfer another 129,632,104 shares in Hangzhou Steel to China Reform Holdings Co., Ltd., both for free.
Prior to transfer, Baowu Group holds 524,274,236 shares in Hangzhou Steel, accounting for 20.18 percent of Hangzhou Steel’s total shares, being the second-largest shareholder in the company, while the two abovementioned companies which will receive shares do not have any shares in Hangzhou Steel.
After the transfer, Baowu Group will hold 30,577 shares in Hangzhou Steel, only accounting for 0.0012 percent of Hangzhou Steel’s total shares, while Beijing-based Chengtong Metal Holdings will hold a 15.19 percent stake and China Reform Holdings Co. will hold a 4.99 stake.
The aim of the transfers of shares is the consolidation of state-owned assets. All the companies in question are owned by China's State-owned Assets Supervision and Administration Commission (SASAC).