Hebei Steel Group gets green light to merge its three listed subsidiaries
Shanghai. September 22. INTERFAX-CHINA - The China Securities Regulatory Commission has approved Hebei Iron and Steel Group's merger plan for its three listed subsidiaries, namely Shanghai Stock Exchange-listed Tangshan Iron and Steel Co. Ltd. and Shenzhen Stock Exchange-listed Handan Iron and Steel Co. Ltd. and Chengde Xinxin Vanadium and Titanium Co. Ltd., according to a joint announcement by the three subsidiaries on Sept. 22.
"Although the government has approved the plan, we still need several months of preparation work for the merger, and I expect it will take place in early 2010," an unnamed employee from Handan Steel's securities department told Interfax.
According to a previous announcement, Tangshan Steel will swap one share in Handan Steel for 0.775 Tangshan Steel shares, and exchange one share in Chengde Xinxin for 1.1089 Tangshan Steel shares. After the transaction, Handan Steel and Chengde Xinxin will be delisted from the Shenzhen Stock Exchange.
Hebei Steel Group and its other subsidiaries will offer cash options to both Handan Steel and Chengde Xinxin shareholders who decide not to participate in the share swaps.