Hangzhou Iron and Steel Co., Ltd announced that it plans to issue shares for Ningbo Commerce and Trade Group to acquire 85 percent equity in Zhejiang Metallurgical Materials Co., Ltd and 85 percent equity in Zhejiang Iron and Steel International Trade Co., Ltd, while it will pay cash to purchase the rest equity in those two companies. Meanwhile, it will issue shares for Zhejiang Dongling Co. Ltd to purchase 100 percent equity in Dongling Commerce and Trade. Moreover, it will also pay cash for Zhejiang Fuchun Co. Ltd to purchase its assets and liabilities in trade section.
The total price of the assets in question amounted to RMB 3.1 billion ($0.44 billion), with the price to be issued for purchasing the asset at RMB 5.61/share ($0.8/share). In particular, Hangzhou Steel will issue 402 million shares and pay cash of RMB 861 million ($121.0 million) additionally to achieve the transactions. The transactions will realize the overall listing for its metal products and raw materials trading sector.
