Hunan Valin Steel Co.,Ltd. signed an equity transfer agreement to acquire 50% stake in Valin ArcelorMittal Electrical Steel Co., Ltd., from Hunan Valin Iron & Steel Group Co., Ltd. for approximately CNY 190 million.
April 30, 2015 at 12:00 am EDT
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Hunan Valin Steel Co.,Ltd. (SZSE:000932) signed an equity transfer agreement to acquire 50% stake in Valin ArcelorMittal Electrical Steel Co., Ltd., from Hunan Valin Iron & Steel Group Co., Ltd. for approximately CNY 190 million on April 28, 2015. In a related transaction, Hunan Valin Steel Co.,Ltd. and ArcelorMittal (ENXTAM:MT) signed a capital increase agreement to increase capital of Valin ArcelorMittal Automotive Steel Co., Ltd. on April 28, 2015. Hunan Valin Steel will carry out capital increase in Valin ArcelorMittal Automotive Steel through the 50% stake in Valin ArcelorMittal Electrical Steel held by Hunan Valin Iron & Steel Group and CNY 7.9 million in cash, whereas ArcelorMittal will carry out capital increase in Valin ArcelorMittal Automotive Steel through its 50% stake in Valin ArcelorMittal Electrical Steel. As of December 31, 2014, the net asset of Valin ArcelorMittal Electrical Steel Co., Ltd. is CNY 375.37 million. Post closing, Valin ArcelorMittal Electrical Steel Co., Ltd. will be a wholly owned subsidiary of Hunan Valin Steel Co.,Ltd.
The deal has been approved by the Board of Directors of Hunan Valin Steel on April 28, 2015 and still needs the approval of the shareholders of Hunan Valin Steel. On May 20, 2015, the transaction is approved by shareholders of Hunan Valin Steel. The deal does not need the approval of the related government agencies.
Hunan Valin Steel Co., Ltd. is one of the Chinese largest steel producers. The activity is organized around 6 families of products:
- rolled steel products;
- steel bars;
- steel plates;
- tubes;
- steel wires;
- galvanized steels.
Hunan Valin Steel Co.,Ltd. signed an equity transfer agreement to acquire 50% stake in Valin ArcelorMittal Electrical Steel Co., Ltd., from Hunan Valin Iron & Steel Group Co., Ltd. for approximately CNY 190 million.