The additional price falls below the time limit only 1 months Jigang merges the steel or the fall
KeywordsMonths only time limit
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After 5 months of silence, Jinan iron and steel absorption combined with LAIWU steel shares hint at the risk: major asset restructurings may not be implemented. Under the background of the price of Jinan iron and steel falling below 20%, there is some uncertainty about the combination of Laigang and steel. February 24, 2010, Jinan Steel Bulletin, Jinan Iron and Steel Co., Ltd. Stock Exchange absorption merger, issue shares purchase assets and related transaction plan. After a lapse of 5 months, Jinan Steel, Laigang also announced today, in the first review of the major assets reorganization related matters of the Board resolution notice in the future 6 months after the failure to issue a notice of shareholders meeting, the two companies need to reconvene the Board of Trustees to consider major assets reorganization related matters. The Board of Directors considered Jinan iron and steel absorption combined LAIWU Steel shares restructuring plan for the February 24, so far the past 5 months, the board has not proposed to convene a general meeting of shareholders. Now, the last 1 months of the 6-month deadline remain. In fact, according to relevant laws and regulations, the Board of Trustees to review the reorganization resolution must be held within 6 months of the shareholders meeting, the two companies today's announcement is only to revive the reorganization plan has been prompted by the risk. However, investment bankers believe that, in the period of reorganization is not much, and the direction of additional prices below the IPO price, the two companies suggest that the shareholders meeting has not been held at risk, behind or large shareholders to send a signal to the market, for future restructuring will not be buried foreshadowing. "They or wait until the expiration of the deadline, wait three months to reconvene the board, to determine a new restructuring price." Jinan iron and steel absorption combined with Laiwu steel shares include two parts: First, Jinan iron and steel to replace shares in the way to absorb the shares of Laiwu Steel; the second is Jinan steel to 5.05 yuan/unit, to the Jigang group, LAIWU Steel Group issued shares to buy its holdings of the estimated 8.585 billion yuan of the remaining main assets and the Jinan Steel group's 3 billion Yuan cash. Laiwu Steel shares, Jinan iron and steel exchange Price is 12.29 yuan, 5.05 yuan respectively. The proposal also designed the stake of Laiwu Iron and steel shareholders cash options, that is, Laiwu iron and steel shareholders can be eligible for objections per 1 shares 12.29 yuan/share. Since the release of the reorganization plan, Jinan steel and Laiwu steel shares have fallen, the real estate "10" issued in April, the steel plate by the rapid contraction of real estate transactions, the impact of the decline in steel prices collectively cut. July 23, Jinan Steel and Laiwu steel shares of the closing price of 3.84 Yuan and 9.07 yuan respectively. Industry analysts told reporters that with the targeted additional prices, Jinan steel fell to 23.96%. At this point, Jigang Group, Laiwu Steel Group to sell assets far higher than the market, it will be very uneconomical, they are unwilling to promote restructuring. The evaluation base date for the reorganization plan is November 30, 2009. In accordance with the plan, in addition to 3 billion yuan cash, the acquisition of physical assets of 6.916 billion yuan, the pre-valuation of 8.585 billion yuan, value-added rate of 24.13%.
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