On November 20, Chinese steelmaker Chongqing Iron and Steel Co. (Chongqing Steel), a subsidiary of Chongqing Iron and Steel (Group) Co., announced that its major asset restructuring plan has received final approval from the China Securities Regulatory Commission (CSRC), China's top securities regulator.
Accordingly, the total sum Chongqing Steel will pay to Chongqing Steel Group for its Changshou new area iron and steel production assets is RMB 16.94 billion ($2.77 billion). In particular, Chongqing Steel will issue 2 billion shares at RMB 3.14 per share ($0.51 per share) to Chongqing Steel Group worth a total of RMB 6.268 billion ($1.02 billion). Furthermore, Chongqing Steel will assume Chongqing Steel Group debts amounting to RMB 10.463 billion ($1.71 billion), while it will pay the remaining RMB 206 million ($33.7 million) in cash. Meanwhile, Chongqing Steel will also raise not more than RMB 2 billion ($326.8 million) from a maximum of 10 investors.