China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
Inner Mongolia Rare-Earth announced on September 27 that the company will participate in the material assets reorganization between Ganzhou Chenguang Rare Earths New Material Shares CO., Ltd. and Sunyoung Properties Co., Ltd.
The asset value of Ganzhou Chenguang and Sunyoung is CNY 216 million (USD 34.27 million) and CNY 3.34 billion (USD 529.7 million), respectively.
Sunyoung will issue 822 million shares at CNY 3.8 per share to shareholders of Ganzhou Chenguang.
Sunyoung will issue 76.05 million shares to Inner Mongolia Rare-Earth, which holds a 9.25% stake in Ganzhou Chenguang.
Upon completion of the transaction, Inner Mongolia Rare-Earth will hold a 6.67% stake in Sunyoung.
Sunyoung is listed on the Shenzhen Stock Exchange, but has suspended transactions since April 30, 2007. Tags: Diversified Metals & Mining, Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co., Ltd.
Source (Chinese): Cninfo
