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Tangshan Steel to get steel businesses from parent

Published: 21 Jun 2009 23:02:24 PST

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Jun. 22, 2009 (China Knowledge) - Tangshan Iron and Steel Co Ltd (Tangshan Steel)<000709>, a listed unit of Hebei Iron and Steel Group (HISG), will take charge of two of HISG's steel businesses, according to a statement Tangshan Steel filed with the Shenzhen Stock Exchange over the weekend.

HISG will transfer its stakes in Wuyang Iron and Steel Co and Xuanhua Iron and Steel Co to Tangshan Steel, aiming to speed up its group listing plan.

The stake transfer is in accordance with the promise HISG made in May to sell its steel and iron businesses to Tangshan Steel within three years following Tangshan's merger with Handan Iron & Steel Co Ltd<600001> and Chengde Xinxin Vanadium and Titanium Co Ltd<600357>, which took place a year ago.

HISG will retain the steel businesses in its listed subsidiaries.

After the completion of the transfer, the share price of Tangshan Steel will be between RMB 7.66 and RMB 8.98, according to a statement of China International Capital Corp (CICC), the largest investment bank in the country.

Handan Iron & Steel Co Ltd<600001> currently holds a 53.12% stake in Wuyang Iron and Steel, which has a registered capital of about RMB 2.3 billion, while Xuanhua Iron and Steel, a subsidiary of Tangshan Steel, has a registered capital of RMB 1.8 billion.

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