Baosteel signed a shareholding co-operation agreement with Aquila

August 28 MetalBiz--On August 27, Baosteel Group inked a shareholding co-operation agreement with Aquila, and then Baosteel Group will buy 15% stock of Aquila, becoming the second-largest stockholder. The deal needs to be approved by the related regulators of China and Australia.

According to the agreement, Baosteel Group will buy fewer than 43,95 shares newly issued by Aquila. After the deal, Baosteel will own 15% shareholding of Aquila. Baosteel will pay AUD 290mln cash for the two deals. Baosteel buys Aquila with its own capital. After the completion of this deal, Baosteel will appoint a director for Aquila.

In the meantime, Baosteel also signed memorandum related to strategic cooperation with Aquila, and the both sides will further co-operate in the resource projects.

Baosteel thought that the co-operations are conforming to the international commercial principles to operate. Baosteel's administration and supervision authorities are bullish on the potential growth of Aquila assets. The co-operations highly reflect the principle of mutual benefit and win-win as well as collaborative development, which marks that Baosteel walks out an important and firm step in the internationalization process.