SGIS and Baosteel Special Steel 2.8 billion joint venture company set up
SGIS (000717) on Wednesday night announcement that the company intends and Baosteel Special Steel Co., Ltd. jointly set up a joint venture company Baosteel special steel longs, Ltd. (tentative name), which the company holds 49%.
Announcement shows that the establishment of this joint venture, SGIS intends to wholly-owned subsidiary of Baosteel Special Steel Co., Ltd. 100% stake in Shaoguan, a total of 1.372 billion yuan of its own funds and capital contribution, Baosteel Special Steel intends to structure its own funds and a total of 14.28 one hundred million yuan investment. The registered capital of the joint venture is 28 million.
SGIS said that the pricing of assets connected transaction involving this investment are funded based on the base date of assessment Assessment is injected into the joint venture, the company invested 1.372 billion yuan, Shaoguan Steel to hold 100% stake in the assessed value 1.354 billion yuan, the difference between its own funds invested. After this investment, the company from 100% to Shaoguan Steel shares into shares of the joint venture company 49% of long-term equity investment from the cost method becomes the equity method.
The company said that the purpose of this investment is that by Baosteel special steel long products division and Shaoguan Steel Company, a wholly owned subsidiary of the Company related to the integration of resources, sharing of Baosteel special steel long products brand value and take advantage of the company's iron water resources and cost advantages, to achieve the billet from molten iron to the whole process and then to commercial timber production capacity, sales and research integration, the rapid increase of production and sales of special steel long products, optimize the product structure, accelerate the steel market development, improve the steel business benefit.