129749587886406250_80Baoshan (600019.SH) announced on February 28 that it plans to split the assets of Baosteel's stainless steel, special steel group and its subsidiaries, expecting to gain a pre-tax income of $9.58 billion. This includes the acquisition under stainless of all assets and a small amount of business liability from the Shanghai Baosteel stainless steel division, with a transaction base price of $25.6 billion; Baosteel Special Steel Corporation will acquire all assets and a small amount of business volume from the Baosteel Special Steel Division, as well as 100% equity in Shanghai Baosteel Special Metal Material Co., Ltd., equity in Baoyin Special Steel Tube Co., 58.5% and 94.5% equity in Shanghai Wugang Gas Co., Ltd., 9.71% shares in CNAC Material Industry (Xian) Ltd., with a trading benchmark of 16.972 billion yuan. Baosteel Group will hold Ningbo Baoxin Stainless Steel Co., Ltd., 40% and 54% equity in Shanghai Shida Precision Stainless Steel Hung Stainless Steel stakes, and 20% shares in Japan (Shanghai), with a total trading benchmark price of $2.59 billion.
Baosteel stated that although the stainless steel business leads in terms of equipment and technology, it has inherent disadvantages and costs before iron, along with poor operating conditions; the special steel business is well-equipped but has small capacity, cross-processes, complex production processes, and high operation costs.
After the business split, the company is committed to consolidating and strengthening its dominance in the domestic carbon steel plate market, aiming to become the world’s most competitive supplier of carbon steel plates. The expected business split will reduce steel output from 26 million tons to 22 million tons. Financially, after the newly merged split reports, total assets increased by $2,763,903,100, total liabilities at $5,391,203,800, owners’ equity increased by $3,126,776,700 in the combined statement of income, but there are capital losses above 2011 amounting to $1.54 billion, from which the company expects to reap a benefit of 9.58 billion yuan, with financial costs of about $1.4 billion.
Baosteel reported revenue of $5.3 billion on the 28th, increasing by 2.12%. Online statement Gold: gold online reprint of the above content does not indicate confirmation of the description, for investors' reference only and does not constitute investment advice. Vote Funding operations, at your own risk. Other news related to this topic includes Age of Conan Gold 480x800 resolution - SET Age of Conan Gold thanks to the concept of forward-looking Age of Conan Gold hit - OHH Age of Conan Gold 986 head - HGP Rift Platinum Geluosikeluyici and more - XBB.