China’s Shagang could push for overseas IPO
Shagang Group, the country’s largest private-sector steel mill, said it could proceed with a plan to list overseas, which had been put on hold due to the global financial crisis, Caijing magazine reported on Monday. (www.caijing.com.cn)
Shen Wenrong, the group’s chairman, said it was likely the company would get a strategic partner, then push to list its core assets overseas, the influential financial magazine said.
An unnamed senior executive of Shagang confirmed that Goldman Sachs (GS.N) had planned to purchase 10 percent of Shagang’s stake for 6.6 billion yuan ($966.4 million) in 2007.
“By end of 2007, Shagang’s Hong Kong IPO plan, prepared by Goldman Sachs, had gone through several drafts but did not get approvals. Then the financial crisis hit and the project was put on hold,” the executive was quoted as saying.
The Shenzhen-listed Gaoxin Zhangtong 002075.SZ announced in December it would buy a special steel making unit of Shagang, via a share placement worth 2.23 billion yuan, as part of a plan by Shagang to eventually list its shares publicly.
Shen said the deal was still pending approval from the authorities.
The company has been seeking a public share listing for 14 years, and the authorities have been reluctant giving it the green light, the magazine said.
Tags: IPO