On May 18, Liaoning Province-based Chinese steelmaker Bengang Steel Plates Co., subsidiary of Liaoning-based Benxi Iron and Steel Group, announced a plan for the non-public issuing of new shares.
Accordingly, Bengang Steel Plates will issue 543 million new shares with a price of not less than RMB 6.95 ($1.07) per share to raise RMB 3.7 billion ($0.57 billion). Of the raised money, RMB 1.55 billion ($0.24 billion) will be spent to purchase a 75 percent stake in Benxi Steel POSCO Cold Rolled Sheet Co., Ltd,. owned by Bengang Steel Plates' parent company Benxi Iron and Steel Group, RMB 1.3 billion ($0.2 billion) will be spent to purchase exploration rights for the Xujiabaozi iron ore deposit - also from Benxi Iron and Steel Group, while the remaining RMB 850 million ($130 million) will be used to replenish Bengang Steel Plates' liquidity.