Hong Kong-based investment holding company China Oriental Group announced that its subsidiary Hebei Province-based Chinese steelmaker Jinxi Iron and Steel Co. Ltd (Jinxi Steel) plans to acquire the remaining 29 percent stake in Hebei-based Zhengda Iron and Steel Co. Ltd (Zhengda Steel) held by Mr. Li Feng, which is priced at RMB 14.5 million ($2.12 million). At present, Jinxi Steel holds a 71 percent stake in Zhengda Steel. In addition, Jinxi Steel will also pay RMB 892.4 million ($130.3 million) in cash to acquire 600,000 mt of iron and steel capacity from Tangshan Capacity Trading Center.
As of June 30, 2018, Zhengda Steel’s total unaudited net liabilities amounted to RMB 112.8 million ($16.5 million).