On December 28, Chinese steel producer Hebei Iron and Steel Group announced that the injection of several iron ore and related assets into its listed subsidiary Hebei Iron and Steel Co. will not be completed by December 31, 2012 as had been scheduled.
Among the reasons for the delay in the transferral of assets, Hebei Steel Group cited the low share price of Hebei Steel as compared to the net asset value per share of the company. In addition, the profits of the iron ore assets have witnessed a decrease because of the declines in iron pre prices, and so the injection of the iron ore assets could affect the profitability of the listed company. Finally, Hebei Steel Group said the injection of the iron ore assets requires much preparatory work and adherence to governmental approval procedures, which require time. Hebei Steel Group stressed that it would continue with its plans to inject the iron ore assets into its listed subsidiary.