On September 25, Chinese steelmaker Chongqing Iron and Steel Co.(Chongqing Steel), a subsidiary of Chongqing Iron and Steel (Group) Co., announced that its major asset restructuring plan has received conditional or preliminary approval from the China Securities Regulatory Commission (CSRC), China's top securities regulator.
Accordingly, Chongqing Steel plans to issue 1.9961816 billion shares at RMB 3.14 per share ($0.51 per share) to Chongqing Steel Group. Chongqing Steel will also raise not more than RMB 2 billion ($326.8 million) from a maximum of 10 investors.
Meanwhile, quality assets of Chongqing Steel Group will be injected into Chongqing Steel, while backward capacities will be eliminated and technology will be updated, with Chongqing Steel's annual steel production capacity increasing to 6 million mt from 3 million mt.
