Chinese steel company liuzhou Iron & Steel Co., Ltd., located in Guangxi Province, announced its intention to acquire an aggregate 13 percent stake in Guangxi Steel owned by liugang Group through the issuance of shares and cash payment, and to raise auxiliary funds through the issuance of shares to no more than 35 specific investors. After the transaction, liuzhou Steel will own 58.11% of Guangxi Steel shares. The purchase price for this transaction has not yet been determined, but will be based on the asset valuation report compiled by related divisions.
Accordingly, the company intends to raise no more than 1.5 billion yuan ($0.22 billion) in support funds, which will be used to pay cash consideration for this transaction, replenish working capital and repay debt, among other purposes.
