Baosteel to Bag $1.5 Bln From Stainless Steel Asset Sale

Industry News 10:59:07AM Mar 01, 2012 Source:SMM

Feb 29 (Reuters) - China's Baoshan Iron & Steel Co Ltd (Baosteel) said on Wednesday it will sell its loss-making stainless steel and special steel assets to parent Baosteel Group which is expected to boost its profit by 9.58 billion yuan ($1.5 billion).

Baosteel, China's biggest-listed steelmaker, will sell its 54 percent stake in Ningbo Baoxin Stainless Steel, 40 percent stake in Shanghal STAL Precision Stainless Steel and its 20 percent stake in Rihong Stainless Steel to parent Baosteel Group, it said in a statement.

Those stakes, along with some other assets it will sell to two other units owned by Baosteel Group, are worth 45.2 billion yuan.

Baosteel said the transaction would cut its annual steel production to around 22 million tonnes from 26 million tonnes and that it would focus on building its carbon steel business.

Shares in Baosteel have gained 9.3 percent so far this year, after falling 24.1 percent in 2011 as a government clampdown on the property sector hit steel prices.

Baosteel said last month that its 2011 net profit fell 43.4 percent to 7.3 billion yuan ($1.2 billion).


 

Baosteel to Bag $1.5 Bln From Stainless Steel Asset Sale

Industry News 10:59:07AM Mar 01, 2012 Source:SMM

Feb 29 (Reuters) - China's Baoshan Iron & Steel Co Ltd (Baosteel) said on Wednesday it will sell its loss-making stainless steel and special steel assets to parent Baosteel Group which is expected to boost its profit by 9.58 billion yuan ($1.5 billion).

Baosteel, China's biggest-listed steelmaker, will sell its 54 percent stake in Ningbo Baoxin Stainless Steel, 40 percent stake in Shanghal STAL Precision Stainless Steel and its 20 percent stake in Rihong Stainless Steel to parent Baosteel Group, it said in a statement.

Those stakes, along with some other assets it will sell to two other units owned by Baosteel Group, are worth 45.2 billion yuan.

Baosteel said the transaction would cut its annual steel production to around 22 million tonnes from 26 million tonnes and that it would focus on building its carbon steel business.

Shares in Baosteel have gained 9.3 percent so far this year, after falling 24.1 percent in 2011 as a government clampdown on the property sector hit steel prices.

Baosteel said last month that its 2011 net profit fell 43.4 percent to 7.3 billion yuan ($1.2 billion).