Baosteel withdraw from Handan Iron and Steel Co., Ltd and postpone overseas listing

Apr.1MetalBiz--On Mar.31, Xu Lejiang, Chairman of Baosteel Group for the first time publicly confirmed that: Baosteel will withdraw from the joint venture company of Handan Iron and Steel Co., Ltd by the means of withdrawing the capital, and the assets will be sold to Hansteel Group.

For this, the related person from Baosteel expressed the prerequisite for cooperation between the two parties had changed. Meanwhile, the industry analysts said the two sides' separation was in the expectation early. Currently, the global steel market kept depressed, and opportunities of M&A emerged, therefore, Baosteel Group can get the money to do more constructive projects.

In 2007, Hansteel and Baosteel united to establish a joint venture company, Handan Iron and Steel Com., Ltd, the registered capital of 120 billion, respectively accounting for 50% stake for each one, and Baosteel invested money, while Hansteel invested money and goods. In 2008, Hansteel Group and Tangshan Iron and Steel Group united to set up Hebei Iron and Steel Group, and Hansteel had become a subsidiary of Hebei Iron and Steel Group.

In addition, Baosteel Group, have publicly stated that they achieve overseas listing before 2010, but Xu Lejiang said yesterday that overseas listing depended on the capital market and corporate performance, at present there was no plans to start overseas listing.