HBIS to increase investment to HBIS Laoting Iron and Steel with Transformation Fund
2021-01-06 16:10:07 [Print]
HBIS announced on January 5 that in order to optimize the asset-liability structure of HBIS Laoting Steel Co., Ltd., replenish capital and reduce financial expenses, the company and Hebei Iron and Steel Industry Transformation and Upgrading Fund would jointly increase investment to Laosteel, and signed the Capital Increase Agreement on HBIS Laoting Iron and Steel Co., Ltd. and Shareholder Agreement on HBIS Laoting Iron and Steel Co., Ltd. with HBIS Group Co., Ltd. and Laosteel together.
After negotiation by the parties to the agreement, HBIS Laoting Iron and Steel's newly increased registered capital was about RMB9.16 billion (USD1.42 billion), of which: HBIS would contribute RMB5 billion (USD774 million) in cash and subscribe for the newly added registered capital of about RMB4.95 billion (USD767 million) of HBIS Laoting Iron and Steel, and the amount of investment beyond the registered capital would be included in the capital reserves of HBIS Laoting Iron and Steel; Transformation Fund would use cash to invest RMB4.25 billion (USD658 million) to subscribe for the newly-increased registered capital of about RMB4.21 billion (USD652 million), and the part of the investment exceeding the registered capital would be included in the capital reserves of HBIS Laoting Iron and Steel. After the completion of the capital increase, the registered capital of HBIS Laoting Iron and Steel would increase to about RMB10.16 billion (USD1.57 billion), of which HBIS invested about 5.95 billion (USD922 million), accounting for 58.5748% and Transformation Fund invested about 4.21 billion (USD652 million), accounting for 41.4252%.
After negotiation by the parties to the agreement, HBIS Laoting Iron and Steel's newly increased registered capital was about RMB9.16 billion (USD1.42 billion), of which: HBIS would contribute RMB5 billion (USD774 million) in cash and subscribe for the newly added registered capital of about RMB4.95 billion (USD767 million) of HBIS Laoting Iron and Steel, and the amount of investment beyond the registered capital would be included in the capital reserves of HBIS Laoting Iron and Steel; Transformation Fund would use cash to invest RMB4.25 billion (USD658 million) to subscribe for the newly-increased registered capital of about RMB4.21 billion (USD652 million), and the part of the investment exceeding the registered capital would be included in the capital reserves of HBIS Laoting Iron and Steel. After the completion of the capital increase, the registered capital of HBIS Laoting Iron and Steel would increase to about RMB10.16 billion (USD1.57 billion), of which HBIS invested about 5.95 billion (USD922 million), accounting for 58.5748% and Transformation Fund invested about 4.21 billion (USD652 million), accounting for 41.4252%.
