Liuzhou Steel plans to acquire additional 13% stake in Guangxi Steel

Liuzhou Iron & Steel Co., Ltd. plans to acquire a 13% equity stake in Guangxi Iron and Steel Group Co., Ltd. from its controlling shareholder, Guangxi Liuzhou Iron and Steel Group Co., Ltd., through a combination of share issuance and cash payment. The company also intends to raise up to RMB1.5 billion (USD221) through a private share placement to no more than 35 specific investors to support the transaction. The final transaction price has yet to be determined.

Prior to the deal, Liuzhou Steel directly holds a 44.77% stake in Guangxi Steel and indirectly owns an additional 0.33% stake through a subsidiary, bringing its total interest to 45.11%. Upon completion of the transaction, Guangxi Steel will become an absolute majority-controlled subsidiary of Liuzhou Steel.

Liuzhou Steel is one of the largest steel producers in southern and southwestern China, with an annual steel rolling capacity of 22.2 million tonnes. Guangxi Steel's core businesses include steel smelting, steel rolling and processing, coking, and the sales of coal and related products.