Hunan Province-based Chinese steelmaker Hunan Valin Iron & Steel Co. (Hunan Valin Steel) has announced that it plans to issue 1.36 billion shares worth RMB 8.73 billion ($1.26 billion) for Valin Group and Lianyuan Steel Group, in order to purchase all other equities in its three subsidiaries, namely, Hunan Valin Xiangtan Iron and Steel Co., Ltd (Valin Xiangtan Steel), Hunan-based Valin Lianyuan Steel (Valin Ly Steel) and Hunan-based Hengyang Valin Steel Tube Co. Ltd., from other shareholders, while purchase 100 percent equity in Hunan Province-based Hunan Valin Energy-saving and Environmental Protection Technology Co via cash of RMB 1.77 billion ($0.26 billion). In particular, the share in question will be priced at RMB 6.41/share ($0.92/share).
Hunan Valin Steel stated the acquisition will improve the company’s profitability via avoiding internal competition between listed company and controlling shareholder.