Hebei Iron and steel industry integration of Handan iron and steel is 10% arbitrage space

Each reporter Zhangjilu and Pangang department reorganization twists and turns constantly different, Hebei Iron and steel industry restructuring (Tanggang shares in the absorption of the combination of Handan iron and steel and Chengde vanadium titanium) relatively flat, at this stage only the CSRC approval, and then the annual output of 19.39 million tons to become the second largest steel listed companies, after Baosteel shares. The same is because the share price after the stock exchange rate, the merged companies have a certain arbitrage space.　　Handan Steel and Tanggang share exchange ratio of 1:0.775, in accordance with the closing price of two shares yesterday, Handan Iron and steel about 10% of the arbitrage space, Chengde vanadium and titanium per share for 1.089 shares of the Tang steel, there are 3.82% arbitrage space. Restructuring is expected to be completed in October Hebei Steel industry restructuring period is precisely the lowest in the industry.　　Tang Steel shares, Handan Iron and steel and Chengde vanadium and titanium respectively, the price of their cash options are 5.29 yuan, 4.10 yuan and 5.76 yuan, and the current three companies have significantly exceeded the price of cash rights, which is also the General Assembly of the high vote to pass the reorganization plan. If all goes well, the final job is expected to be completed around October this year.　　CICC Research report that after the merger, Hebei Iron and steel Company 08 steel production total 19.39 million tons, after Baosteel's shares of 22.81 million tons, in the domestic steel listed companies ranked second. After the consolidation of the Hebei Iron and steel shares will be the only listed platform for Hebei Iron and Steel Group, recently the group has made a clear commitment to Wuyang steel and Xuan Steel into the listed companies within a year.　　After the injection, the listed company will increase the capacity of 9 million tons of steel, more than Baosteel to become the country's largest steel listed companies.　　The relative arbitrage opportunity revealed CICC also pointed out that the current stock price of Handan steel and Chengde vanadium and titanium contains different degrees of risk-free arbitrage opportunities. Yesterday's closing, Tang Steel shares received at 8.16 Yuan, Handan Iron and steel reported to be closed at 5.77 yuan, Chengde vanadium Titanium received at 8.56 Yuan, in accordance with the absorption of the merger scheme, Handan Steel for 0.775 shares per share of steel, each of Chengde vanadium and titanium for 1.089 shares of the Tang steel, which means that Handan iron and steel and Chengde vanadium and titanium stock price relative to the Tang steel shares exist 9.6% and 3.82 % discount.