Baosteel Group not to cut shareholding in listed unit
Baosteel Group Corporation said it would not cut its shareholding in the listed unit Baoshan Iron & Steel Corp (Baosteel) in the near future as it is very optimistic about the unit’s development.
The remarks were made in response to growing concerns of heavy equity supplies in the weak Chinese stock market. Due to the expiration of a lock-up period related to Baosteel’s shareholding structure, 11.9 billion shares in the listed company, or 68% of its share capital, held by Baosteel Group and other institutional investors will become tradable today.
Wang Chengran, a director of Baosteel Group’s investment operations, was quoted as saying that the Group does not have any cash shortage problem and could sell other assets if needed to raise money.
As of the end of June, Baosteel Group owned 12.95 billion shares in the listed unit, accounting for 73.97% of the total share capital.
Baosteel’s shares fell 4.56% to RMB 6.69 on Monday.
Tags: Baoshan, Baosteel