Liugang plans to increase capital to gain control of Guangxi Iron and Steel Co., Ltd.

SMM8, March 25, yesterday night Liugang shares disclosed a major asset restructuring plan for the company to increase capital and participate in the shares. Liuzhou Iron and Steel Co., Ltd. plans to increase the capital of Guangxi Iron and Steel through monetary funds, and obtain the new equity of Guangxi Iron and Steel. After the completion of this capital increase, the listed companies will acquire the control of Guangxi Iron and Steel and realize the merger of Guangxi Iron and Steel.

Liugang plans to increase the capital of Guangxi Iron and Steel with monetary funds, of which 6 billion yuan will increase the registered capital of Guangxi Iron and Steel, and the rest will enter the capital reserve. After the completion of this capital increase, the registered capital of Guangxi Iron and Steel will increase from 18 billion yuan to 24 billion yuan, of which listed companies will contribute 11 billion yuan, accounting for 45.83% of the registered capital of Guangxi Iron and Steel, and Liugang Group will contribute 10.938 billion yuan. Accounting for 45.58% of the registered capital of Guangxi Iron and Steel, Wuhan Iron and Steel Group contributed 2.062 billion yuan, accounting for 8.59% of Guangxi Iron and Steel registered capital. Liugang Group and WISCO Group plan to give up the priority right to increase capital of Guangxi Iron and Steel this time.

After the completion of this transaction, Guangxi Iron and Steel will become a controlling subsidiary of the listed company, and the listed company will deeply participate in the follow-up construction of Fangchenggang base, which is conducive to the coordination of production and management in the future.

After Guangxi Iron and Steel is put into production, the main steel products include high-strength rebar, alloy steel bar, high-quality wire rod, hot-rolled wide strip steel, cold-rolled steel, hot-dip galvanized coil and other steel for construction, automobile, machinery and other industries. it will help Liugang to improve the existing product supply system, optimize product structure and meet the diversified needs of customers. At the same time, listed companies can make use of the geographical advantages of Fangchenggang steel base to actively open up the market of ASEAN countries, enhance their industry status and brand influence, and enhance the sustainable profitability of listed companies.

Click to understand and sign up for the 2020 China Automotive New Materials Application Summit Forum.

Scan the QR code above to view the business cards of the participating companies and sign up online