Guangxi Province-based Chinese steelmaker Liuzhou Iron & Steel Co., Ltd. has announced that it intends to acquire an aggregate 13 percent equity stake in Guangxi Steel held by Liugang Group through the issuance of shares and payment of cash, and to raise supporting funds through the issuance of shares to no more than 35 specific investors. After the transaction, Liuzhou Steel will hold a 58.11 percent equity stake in Guangxi Steel. The purchase price for this transaction has not yet been determined, while it will be based on the asset valuation report made by related departments.
Accordingly, the company intends to raise no more than RMB 1.5 billion ($0.22 billion) in supporting funds, which will be used to pay the cash consideration for this transaction, replenish working capital and repay debts, among other purposes.
