Baowu and Magang Group sign agreement for restructuring
2019-09-19 18:16:38 [Print]
On the afternoon of September 19, China Baowu Steel Group and Magang Group signed an agreement for implementing restructuring in Hefei.
On June 3, Masteel Group released an announcement that the company received China Baowu and State-owned Assets Supervision and Administration Commission of Anhui signed an agreement for gratuitous transfer of state-owned equity. Based on the agreement, the former acquires 51% equity in Magang Group Holding Co., Ltd. and the latter holds 49%. Thus, China Baowu is the new controlling shareholder of Magang Group Holding Co., Ltd.
After the transfer, Magang Group directly holds 3.5 billion shares of Masteel Group's A-shares, accounting for about 45.54% in Masteel Group's total equity, and becomes the direct controlling shareholder of Masteel Group and China Baowu becomes the indirect one. As China Baowu belongs to State-owned Assets Supervision and Administration Commission of the State Council, the latter will be the actual controller of Masteel Group.
The general assets of Magang Group in 2018 were RMB97.004 billion (USD13.67 billion) and the company produced 19.64 million tons of crude steel. With the steel mating production scale of 20 million tons, Magang Group has four major iron and steel production bases, including the head office of Masteel Group, Changjiang Iron and Steel, Hefei Company and Wadun Company.
China Baowu Steel Group is the result of joint restructuring between Baosteel Group Co., Ltd. and Wuhan Iron and Steel (Group) Co., Ltd., which was founded on December 1, 2016 with the iron and steel capacity of 70 million tons. China Baowu is the pilot enterprise for state-owned fund to invest in companies. The general assets of China Baowu in 2018 were RMB711.8 billion (USD100 billion) and the crude steel output was 67.25 million tons.
It is said that after restructuring, the total output of crude steel will be improved to more than 87 million tons, accounting for about 9.4% in national crude steel output. The restructuring is expected to move the concentration index of Chinese iron and steel industry up by 1.5%, improve bargaining power of Chinese steel mills with overseas mines and Chinese discourse power in iron and steel industry chain all over the world.
On June 3, Masteel Group released an announcement that the company received China Baowu and State-owned Assets Supervision and Administration Commission of Anhui signed an agreement for gratuitous transfer of state-owned equity. Based on the agreement, the former acquires 51% equity in Magang Group Holding Co., Ltd. and the latter holds 49%. Thus, China Baowu is the new controlling shareholder of Magang Group Holding Co., Ltd.
After the transfer, Magang Group directly holds 3.5 billion shares of Masteel Group's A-shares, accounting for about 45.54% in Masteel Group's total equity, and becomes the direct controlling shareholder of Masteel Group and China Baowu becomes the indirect one. As China Baowu belongs to State-owned Assets Supervision and Administration Commission of the State Council, the latter will be the actual controller of Masteel Group.
The general assets of Magang Group in 2018 were RMB97.004 billion (USD13.67 billion) and the company produced 19.64 million tons of crude steel. With the steel mating production scale of 20 million tons, Magang Group has four major iron and steel production bases, including the head office of Masteel Group, Changjiang Iron and Steel, Hefei Company and Wadun Company.
China Baowu Steel Group is the result of joint restructuring between Baosteel Group Co., Ltd. and Wuhan Iron and Steel (Group) Co., Ltd., which was founded on December 1, 2016 with the iron and steel capacity of 70 million tons. China Baowu is the pilot enterprise for state-owned fund to invest in companies. The general assets of China Baowu in 2018 were RMB711.8 billion (USD100 billion) and the crude steel output was 67.25 million tons.
It is said that after restructuring, the total output of crude steel will be improved to more than 87 million tons, accounting for about 9.4% in national crude steel output. The restructuring is expected to move the concentration index of Chinese iron and steel industry up by 1.5%, improve bargaining power of Chinese steel mills with overseas mines and Chinese discourse power in iron and steel industry chain all over the world.
