1. To subscribe for 939 million shares of Formosa Ha Tinh (Cayman) Limited
With the plan of Formosa Ha Tinh (Cayman) Limited to issue its new stocks by increasing cash capital, China Steel Corporation (CSC) will increase its indirect holding ratio in Formosa Ha Tinh Steel Corporation (FHTSC) from 5% to 25% by investing US$939 million to subscribe for 939 million shares in Formosa Ha Tinh (Cayman) Limited through China Steel Asia Pacific Holdings Pte. Ltd.


CSC is promoting its overseas development strategy proactively. It has been evaluated that the strategic alliance between FHTSC and CSC will have the benefits of complementary synergy of vertical integration. Originally CSC invested in FHTSC by 5% ownership in August 2010. The increase of CSC's investment in FHTSC will further enhance the cooperative relationship between the two companies and will enable CSC to be more flexible for its deployment of investments in India, Southeast Asia and other surrounding regions in the future.


2. To subscribe for new issued stocks by cash-capital increase of Taiwan Rolling Stock Co., Ltd. (TRSC) and purchase the shares of TRSC held by Tang Eng Iron Works Co., Ltd.
CSC will invest NT$869 million in subscribing for new issued stocks by cash-capital increase (NT$608 million) of Taiwan Rolling Stock Co., Ltd. (TRSC) and purchase the shares of TRSC (NT$261 million) held by Tang Eng Iron Works Co., Ltd. respectively.
It has been considered that CSC's investment in TRSC will not only upgrade the quality and quantity of Taiwan's rail vehicles for striving for tremendous trading opportunities of track engineering in Southeast Asia, but also ensure the completion of Danhai Light Rail Line engineering project as scheduled and quality to achieve the goals of rail vehicles manufactured by local enterprises in Taiwan.


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