Valin ArcelorMittal Automotive Steel Co., Ltd. announced that it has entered into a capital increase agreement to receive CNY 395,502,236.20 in an equity round of funding from returning investors Hunan Valin Steel Co.,Ltd. and ArcelorMittal on April 28, 2015. The CNY 193,796,601.14 of the funding will be received in form of 50% stake of Valin ArcelorMittal Electrical Steel Co., Ltd. The transaction was approved by 24th meeting of the 5th board of directors of Hunan Valin Steel Co., Ltd. Post transaction Hunan Valin Steel Co.,Ltd. and ArcelorMittal each will maintain their stake at 51% and 49%. The company reported total revenue of CNY 270,000; net loss of CNY 39,150,000; and net assets of CNY 2,560,850,000 for the year ended December 31, 2014.

The transaction is not subject to government approval. The CNY 394,410,000 will be added to the registered capital of the company and remaining to the capital reserve.