Guangzhou plans to restructure Guang Steel Group's shares to suspend trading for one months

Guangzhou Iron and Steel Co., Ltd. (600894. SH, hereinafter called Guang Steel shares) sources 11th confirmed to Caixin, the company since 8th, the Guangzhou municipal government requested to suspend business, because the Guangzhou government will be Guangzhou Iron and Steel Enterprise Group Co., Ltd. (hereinafter referred to as the Canton Steel Group) restructuring.　　As the reorganization programme is still under discussion, the date of the reinstatement scheduled for 15th may be postponed by three weeks. 8th Night, the Canton Steel shares issued a notice said that the company received the notice of the controlling shareholder Guang Steel Group, under the coordinated guidance of Guangdong Province and Guangzhou municipal government, it is planning the important matters related to the broad steel shares, the related program is advising the relevant departments on policy, some matters still exist uncertainty, so the Guangzhou steel shares began to suspend business on 8th.　　, the suspension period of not more than 5 trading days. Guangzhou Steel shares board of Directors Working Group on the morning of 11th on the company's duplicate licensing discussion, a board of directors team told Caixin reporter, currently because the reorganization plan is still under discussion, the date of the restoration is still uncertain.　　He said the company expects to be allowed to suspend business for one months, waiting for the scheme to come back after the deal, but the company is still not with the Shanghai Stock Exchange (hereinafter referred to as "SSE") communication. The reorganization of Guangzhou Steel Group with Baosteel Group and Guangdong Shao Steel Group (hereinafter referred to as "Shao Gang Group") began in 2008. June 28, 2008 Baosteel Group and Guangdong province Sasac, Guangzhou Municipal Commission of the Joint formation of Guangdong Iron and steel Group, according to the agreement signed by the three parties, Baosteel Group to cash capital of 28.688 billion yuan, accounting for 80% of total equity, Guangdong State-funded committee, Guangzhou Sasac respectively to Shaoguan Steel Group,　　The company's state-owned net assets were invested at 7.172 billion yuan, and the total held 20%. Thus, in nominal terms, Baosteel group has put Shao Steel group, Guang Steel Group under the holding of Baosteel Group.　　According to the plan, Baosteel Group will promote the "new" Zhanjiang project through the Guangdong Iron and Steel Group, "transform" Shao Steel Group, and "relocate" the remaining capacity of the Guangzhou Steel Group to Zhanjiang. But the real reorganization has not been carried out, the reorganization of the three-party asset consolidation has not been carried out. The Guangzhou government has been paying close attention to the three-party reorganization, the director of the Guangzhou-Steel shares told Caixin News reporter.　　At present, the Guangzhou government's reorganization of the Canton Steel Group, has involved the "focus" of things, will cause greater volatility in the market, so the Guangzhou municipal government requested the suspension of steel shares. It was revealed that the consolidation of the assets and liabilities of several poorly run subsidiaries of the group would also be a focus of the restructuring.　　A source close to the broad Steel Group said the company was also discussing with the Guangzhou municipal government how to rescue the poorly managed subsidiaries, "if the companies are not saved, the big shareholders of these companies will likely leave, which will create problems within the broad steel Group". The director of the Guangzhou-Steel shares told Caixin News reporter that Baosteel Group would also participate in the reorganization.　　He said that the Canton Steel Group did not have a specific plan for restructuring, only the general intention, the group is currently communicating with the Guangzhou municipal government, the two sides will seek to develop a framework for restructuring during the suspension. He stressed that thisSaid the suspension period is "the hope of one months", if the SSE does not allow 15th to continue the suspension, the restructuring plan may take three months before it can be discussed again.