Chongqing Iron & Steel Co. Ltd. (01053.HK, 601005.CN) said its asset restructuring plan has received approval from the China Securities Regulatory Commission, Shanghai Securities News reported Monday, citing a regulatory filing. Under the plan, Chongqing Iron & Steel Co. will issue 1.99 billion shares to major shareholder Chongqing Iron & Steel (Group) Co. Ltd. for its production facilities and assets in Changshou district. The shares will be priced at 3.14 yuan each. In addition, Chongqing Iron & Steel Co. will make a 200 million yuan (US$32.78 million) cash payment to Chongqing Iron & Steel (Group). After completion of the deal, Chongqing Iron & Steel Co. will double its annual steel production capacity to six million tons. The company expects to record a net loss of 547 million yuan for next year, lower than this year’s level, the report said.
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