CCB intends to sell eight steel group shares

May 27, the Shanghai Joint Equity Exchange listing information shows that China Construction Bank intends to sell its holdings of all of Baosteel group Xinjiang Bayi Iron and Steel Co., Ltd. (hereinafter referred to as: the Eight steel group) equity.　　CCB holds a 5.99% per cent stake in the company, its fourth largest shareholder. The eight steel group is Army Day Steel (600581) controlling shareholder, holding Army Day steel 407 million shares, the shareholding ratio is 53.12%. According to CCB's offer, the equivalent of the assignee will be 17.26 yuan per share of the price of Army Day steel 24.39 million shares.　　May 27, Army Day Steel to 12.55 yuan/share. Of course, CCB dared to open the price, the eight steel group of unlisted assets are also considerable. At present, the eight steel group's molten iron production capacity of 5.9 million tons, crude steel is all by the listed companies Army Day of the output, there is a huge amount of related transactions.　　Considering the improvement of the corporate governance structure, the iron production system of the eight steel group will inject timing into the listed companies to realize the overall listing of steel assets, but the timetable has not yet been established. Public information shows that as of April 30, 2010, the eight steel group to achieve operating income of 2.2 billion yuan, net profit of 224 million yuan, book net worth of 6.341 billion yuan.　　In translation, CCB Holdings of eight steel group equity net assets of 380 million yuan, the transaction price premium of 10.82%. The announcement shows that the original shareholders of the eight steel group do not give up the preemptive right, management is not interested in participation in the assignee. At the same time, the assignee should be "registered in accordance with the law of effective state-owned or state-controlled large enterprises." There is speculation that Baosteel will be the final user. At present, the top five shareholders of the eight steel group are state-owned enterprises, in addition to CCB, Baosteel Group shareholding 69.56%, Xinjiang Investment Development (Group) Limited liability company accounted for 15%, China Huarong Asset Management company accounted for 9.3%, Xinjiang Investment Credit Co., Ltd. accounted for 0.15%.