Hebei Iron and steel public offering 16 billion acquisition Han Bao Steel

NetEase Financial June 8, Hebei Iron and steel Evening notice, the Company intends to open the issue of not more than 3.8 billion shares, raise funds not more than 16.015 billion yuan, for the acquisition of Handan Iron and steel group Han Bao 100% stake.　　The public offering price is not less than the average value of the first 20 trading day of the company A shares or the average price of a shares in the previous trading day. Because of the company and Handan Iron and steel group with the control of the group, and the group for the holding of 11.99% shareholders of the company, therefore, the issuance of a a-share raise capital acquisition of Handan Bao Company's 100% stake in the conduct of the company's related transactions.　　This transaction needs to be submitted to the general meeting of Shareholders for approval and approval by the SASAC and the CSRC. Han Bao Company registered capital of 12 billion yuan, is the new area of Handan Iron and steel project investment and management, the new area of Handan City project is Hebei province "Eleven-Five" period of the structural adjustment of the industrial structure of the landmark project.　　As at March 31, 2010, the end of 2009 net assets of 12 billion yuan and 11.9 billion yuan respectively, the total assets of 30.4 billion yuan and 23.8 billion yuan respectively, 2010 1-March, 2009 years of operating income of 4 billion yuan and 11.5 billion yuan, the net profit is 112 million yuan and 273 million yuan respectively. Elimination of competition product categories will further enrich Han Bao Company's main products for hot-rolled coil and cold rolled plate, and the company engaged in the business existence of a certain degree of competition.　　In order to avoid the potential damage to the interests of listed companies, Hebei Iron and Steel Group has been in the company to absorb the merger of Handan Iron and steel and Chengde vanadium titanium in the exchange of shares after the completion of the merger in three years, Handan Bao company into the listed companies. After the acquisition is completed, will fundamentally resolve the Han Bao company and the competition between the company, at the same time, Han Bao Company's product positioning for the current domestic shortage of pipeline steel, automotive board, home appliances, such as high value-added products, equipment, technology, technology are in the international leading level, two of energy to achieve efficient comprehensive utilization, set large-scale, modern　　, high efficiency, environmental protection in one, Hebei Iron and Steel Group is the most high-quality iron and steel main asset. After the acquisition is completed, the company's product categories will be further enriched, technology and product structure further optimization, the core competitiveness will be significantly improved.　　Han Bao's 2010 annual forecast net profit of 581 million yuan, and is still in the construction period, profitability has not been fully released, to the end of the two-phase cold rolling project after the production, will further enhance the competitiveness of the company's products and profitability level. Hebei Iron and Steel Group on the overall listing of China's second largest listed steel companies Hebei Iron and Steel Dong Li Buhai in 2009 online performance statement, said since the merger and reorganization, the effect has emerged, after the reorganization of the three companies to break the technology, management and information barriers, three companies advanced technology and management experience into a unified platform,　　Facilitated management upgrades and product development. Dong Li Buhai said, the group has promised Wugang, Xuangang within one year after the completion of the integration into the publicDivision, the relevant work is being actively carried out.　　Mine resources are integrated and managed by the mining companies of Hebei Iron and steel Group.　　According to the public information, in addition to the listed companies, the main steel industry of Hebei Iron and steel group is mainly concentrated in Xuan Steel group, Wuyang Iron and Steel, Handan Bao company, stainless Steel company and Shougang company, such as Beijing-Tang. Hebei Iron and steel production in 2009 23.35 million tons of pig iron, an increase of 17.69%, 23.03 million tons of steel production, increased by 8.14%, production of steel 20.7 million tons, the increase of 6.78%, steel, iron, timber total output is slightly lower than Baosteel's shares, ranked second in the domestic listed steel companies.