Daye Special Steel holds meeting for restructuring and plans to become a listed company
2019-07-30 17:48:45 [Print]
On July 28, Daye Special Steel issued a statement that reviewed by the SFC merger and acquisition of listed company audit committee in its 34th work meeting of 2019, the restructuring of Daye Special Steel was approved with conditions. After restructuring, CITIC Pacific Special Steel Holdings, as the special steel part under CITIC Group, will become a listed company.
According to the newest restructuring draft, Daye Special Steel plans to issue shares to purchase 86.50% equity of Jiangyin Xingcheng Special Steel held by Pacific Investment and other companies; the transaction price is RMB23.179 billion (USD3.37 billion) and the issued price is RMB10 (USD1.45) per share. After the distribution of annual profits in 2018, the issued price will be adjusted to RMB9.2 (USD1.34) per share. Both Daye Special Steel and Jiangyin Xingcheng Special Steel are under CITIC Group. After restructuring, CITIC Pacific Special Steel Holdings, as the special steel part under CITIC Group, will become a listed company.
According to information, Jiangyin Xingcheng Special Steel has more than 3,000 regular types of steel products with over 5,000 specifications. It has five products groups (alloy steel rod, special plate, special seamless steel tube, alloy steel wire and round continuous casting alloy billet) and deep-processing products (heat treatment material, bright steel, automobile components and steel ball), having apparent advantage in types and specifications. Besides, the company has four manufacturing bases (Jiangyin, Qingdao, Jingjiang and Huangshi) and two raw material bases (Tongling and Yangzhou). It has a strategic layout in coastal and riverside industrial chain and an entire special steel industrial chain from raw material to products, expanded processing of products and terminal service.
After the restructuring, the listed company's annual special steel production capacity will reach 13 million tons, and its asset size and profits will boom.
According to the newest restructuring draft, Daye Special Steel plans to issue shares to purchase 86.50% equity of Jiangyin Xingcheng Special Steel held by Pacific Investment and other companies; the transaction price is RMB23.179 billion (USD3.37 billion) and the issued price is RMB10 (USD1.45) per share. After the distribution of annual profits in 2018, the issued price will be adjusted to RMB9.2 (USD1.34) per share. Both Daye Special Steel and Jiangyin Xingcheng Special Steel are under CITIC Group. After restructuring, CITIC Pacific Special Steel Holdings, as the special steel part under CITIC Group, will become a listed company.
According to information, Jiangyin Xingcheng Special Steel has more than 3,000 regular types of steel products with over 5,000 specifications. It has five products groups (alloy steel rod, special plate, special seamless steel tube, alloy steel wire and round continuous casting alloy billet) and deep-processing products (heat treatment material, bright steel, automobile components and steel ball), having apparent advantage in types and specifications. Besides, the company has four manufacturing bases (Jiangyin, Qingdao, Jingjiang and Huangshi) and two raw material bases (Tongling and Yangzhou). It has a strategic layout in coastal and riverside industrial chain and an entire special steel industrial chain from raw material to products, expanded processing of products and terminal service.
After the restructuring, the listed company's annual special steel production capacity will reach 13 million tons, and its asset size and profits will boom.
