Zhu Jimin, chairman of Chinese steel producer
Shougang Steel Group, has finally revealed the details of the agreement signed by Shougang, major domestic steel producer Hebei Steel Group and Chinese coal miner Kailuan Group in September 2011 regarding changes of shareholding in Shougang Jingtang Iron and Steel Co. The details in question had been kept from the pubic up to now.
Accordingly, under the framework of the agreement Shougang's shareholding in Shougang Jingtang United Iron & Steel Co. increased from 51 percent to 70 percent, while Kailuan Group took over the remaining 30 percent of shares, which were originally held by Hebei Steel Group subsidiary Tangshan Steel. In other words, Hebei Steel has completely divested itself of any interest in Shougang Jingtang, which was established in October 2005.
By the end of the first quarter of 2011, Shougang Jingtang's total debt was RMB 48.8 billion ($7.75 billion), accounting for 66.7 percent of the total value of its assets.