Liaoning Province-based Chinese steelmaker Fushun Special Steel (Fushun Special Steel) has announced that its controlling shareholder Liaoning Province-based Chinese steelmaker Dongbei Special Steel plans to transfer 251 million shares in Fushun Special Steel to Jiangsu Province-based Shagang Group, China’s largest private steelmaker, at a price of RMB 9.3/share ($1.3/mt), with a total price of RMB 2.334 billion ($0.33 billion).
Accordingly, Shen Wenrong will continue to be the actual controller of Fushun Special Steel.
After the transfer, Shagang Group will hold 12.73 percent equity in Fushun Special Steel, and become the second largest shareholder in the company, while Dongbei Special Steel will hold 16.52 percent equity in Fushun Special Steel, down from the previous 29.25 percent in the company.
In the first nine months this year, Fushun Special Steel posted an operating revenue of RMB 6.274 billion ($0.88 billion), up 9.36 percent year on year, while it registered a net profit of RMB 282 million ($39.6 million), down 5.58 percent year on year.
Shagang Group stated that it aims to solve Dongbei Special Steel’s capital availability problem, while it also holds an optimistic view of the prospects for Fushun Special Steel.
Shagang Group’s crude steel output amounted to 41.45 million mt in 2022, while it registered an operating revenue of RMB 287.8 billion ($40.4 billion) in the given year.