CCB to transfer Army Day steel 5.99% stake Baosteel or the stock

A few days ago, the construction bank to 421.23 million yuan in Shanghai equity Exchange listed Army Day steel large shareholder of Baosteel group Xinjiang Bayi Iron and Steel Co., Ltd. 5.99% of the equity, the original shareholder clearly said not to give up the preemptive right.　　Analysts said Baosteel Group, which holds 69.56% per cent of the company's stake, could be a bigger supplier. Baosteel Group in April 2007 completed the acquisition of the eight steel group. At that time, after the completion of the transfer of free transfer of eight steel group 48.46% Equity, Baosteel Group to 3 billion yuan, Xinjiang Uygur Autonomous Region state-owned land use rights 309 million to the eight steel group to implement capital increase, then, the eight steel group renamed to Baosteel Group Xinjiang Bayi Iron and Steel Co., Ltd., holding its 69.56%　　The stake of Baosteel Group became the actual controller of Army Day steel. Data show that Bayi Iron and steel group in Xinjiang, China was founded in October 1995, registered capital of 661.9 million yuan, in addition to Baosteel, Xinjiang Investment Development (Group) Co., Ltd., Chinese Huarong Asset management company, Xinjiang Investment Credit Guarantee Co., Ltd held its 15%, 9.3% and 0.15% of the shares respectively,　　And this time the transferor Construction Bank for its four shareholders, holding 5.99% of the equity. Baosteel after the arrival of Army Day steel performance has climbed, the current steel products in Xinjiang, the market share of about 70%, for the Xinjiang region's largest steel enterprises, 2009 capacity has reached 7 million tons, to achieve net profit of 110 million yuan, an increase of 6.05%. The reorganization by the industry is considered to be the steel industry merger and reorganization of the classic case.　　A number of recent studies have suggested that the development of Xinjiang will give the close water tower Army Day steel a dominant position. For the transferee, the transferor does not make strict restrictions, only requires the state-owned or state-controlled large enterprises which are registered effectively in accordance with the law, has good financial status and good social reputation and goodwill, and complies with other conditions stipulated by national laws and administrative regulations.　　Data show that the target company at the end of last year for the evaluation of the base day, its carrying funds of 17.584 billion yuan, net assets of 6.341 billion yuan, net assets evaluation value of 7.027 billion yuan, a premium of about 10%, of which the corresponding transfer of the evaluation value of 421.23 million yuan. Analysts pointed out that the recent consolidation of steel industry, after Baosteel's reorganization of Guangdong Iron and steel group into the substantive phase, the recent SASAC has approved the reorganization of Angang Pangang, and the transfer of this equity is the possibility of Baosteel Group.