21st Century Business Herald quoted the proclamation show which was released before the deadline of the business on September 11th by Nanchang Changli Iron & Steel Co Ltd that Jiangxi Metallurgical Group Corporation made its 57.79% shares in Nanchang Steel go public on Jiangxi Assets & Equity Exchange for transfer on August 17th and Liaoning Founder Group Industrial Co Ltd was picked as the possible transferee of the business.
According to the proclamation, Liaoning Founder plans to take in 57.97% of Nanchang Steel and indirectly to control 68.48% of Changli Steel, Meanwhile Changli Steel projects to set private placement of 132 million A-shares to exchange the whole Shenyang Coking Gas Co Ltd under Liaoning Founder. It also mentioned in the proclamation that Liaoning Founder had already remitted the depository trust & clearing company CNY 336.534 million of cash deposit of performance bond.
As per report, the business still remains in uncertain waiting for the check and approval of State owned Assets Supervision & Administration Commission and China Securities Regulation Commission. After the deadline, Jiangxi Assets & Equity Exchange will organize evaluations on the both sides and Nanchang Steel’s decision is likely to come out by the end of September.
The business recently aroused great industrial attention since the seller gave out high qualification to the transferee who should continue profiting in 2007, 2008 and January to June 2009 and posted gross asset of not less than CNY 10 billion, net assets of net less than CNY 4 billion with the asset liability ratio not more than 60%.
An insider of steel industry noted, the qualification indicates that the seller says no to all steelmakers as mills in China generally suffered losses in the H1 of 2009.
(Sourced from 21st Century Business Herald)
