Hebei Province-based Chinese steel producer Hebei Steel Group has announced that it intends to issue common shares to raise funds for the acquisition of Hanbao Iron and Steel Co., Ltd (Hanbao Steel), a subsidiary of Hebei-based Handan Steel Group, which is in turn a subsidiary of Hebei Steel Group.
Following asset reassessment, the total assets of Hanbao Steel have been estimated at RMB 16.234 billion ($2.48 billion), higher than the value of RMB 16.015 billion ($2.44 billion) recorded in the initial assessment report.
The acquisition deal is still subject to the regulatory approval of the Chinese Security Regulatory Commission.