Ji'nan iron and Steel Co. will buy Laigang stock by way of stock exchange.
Ji'nan iron and steel Limited by Share Ltd (Jinan Iron.Amp; Steel Co., 600022.SH, Ji'nan iron and steel) plan to buy Laiwu iron and steel Limited by Share Ltd (Laiwu Steel Corp. Ltd.). The value of the transaction is 11 billion 330 million yuan, the two companies said on Wednesday.
this long established transaction is part of China's domestic steel industry consolidation plan. The two companies say the new company will be one of the largest listed steel makers in China, and the merger will help to eliminate the competition in the steel industry in Shandong. The shares of Ji'nan iron and steel and Laiwu Steel are located in Shandong province.
merger, the shares will be absorbed and delisted by Ji'nan iron and steel, and Ji'nan iron and steel will then issue 11 billion 590 million yuan of new shares worth RMB 11 billion 590 million yuan to the two companies' parent company Jigang Group (Jigang Group Co.) and the Laigang Group.
the shares of the two companies will resume trading on Wednesday. Previously, the two companies' shares were suspended in November last year. The closing price of Ji'nan iron and steel in November 6th was 5.27 yuan, and the closing price of Laiwu Iron and steel group was 13.07 yuan.