Baosteel to buy 15% stake of Australian miner for A$290m

Baoshan Iron & Steel Co., Ltd. (Baosteel Co. Ltd) signed a cooperation agreement with Australian mining company Aquila Inc. Wednesday to buy a 15 percent stake in the later for A$290 million, making Baosteel the second-largest shareholder of Aquila.

According to the deal, Baosteel agreed to subscribe to less than 43.95 million new shares that Aquila issued with its own capital and then Baosteel will hold 15 percent of Aquila's shares.

The two companies also signed a memorandum of cooperation to further cooperate with each other on resource exploration projects.

Baosteel said it is a win-win deal and the Chinese company sees potential in Aquila. The deal is also a strong signal that Baosteel is entering the international market.

The agreement strictly adheres to international commercial rules, Baosteel added.

This deal is still waiting for the approval from the governmental supervision departments of both countries.
 

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