In order to implement the requirements of the State-owned Assets Supervision and Administration Commission (SASAC) on deepening the reform of state-owned enterprises, Shougang Group plans to sell the 19.18 percent equity in Shougang Jingtang United Iron and Steel Co., Ltd. (Shougang Jingtang) to Beijing Infrastructure Investment Co., Ltd. and Beijing Jingguorui Equity Investment Fund Management Co., Ltd., with a total price of RMB 5.0 billion ($0.7 billion), as announced by Shougang Co., Ltd.
Shougang Jingtang is a joint venture invested by Beijing Shougang Co. Ltd. and Shougang Group, who respectively hold the equity of 51.0 percent and 49.0 percent in Shougang Jingtang. Shougang Co. Ltd. plans to give up the preemptive right in the transfer mentioned in question.