On March 14, Fangda Special Steel Technology Co.Ltd(600507) ( Fangda Special Steel Technology Co.Ltd(600507) , SH) held the second extraordinary general meeting of shareholders in 2022, which was only four days away from the first extraordinary general meeting of shareholders in 2022 held on March 10.
There is only one proposal at the second extraordinary general meeting, that is, to vote on the proposal on foreign investment and related party transactions. According to the announcement previously disclosed by the company, Fangda Special Steel Technology Co.Ltd(600507) plans to jointly initiate the establishment of Jiangxi huxu iron and steel industry investment partnership with the related party Shanghai huxu investment Management Co., Ltd. (hereinafter referred to as Shanghai huxu), with a total fund size of 10 billion yuan, As a limited partner, the company plans to invest 4 billion yuan.
Fangda Special Steel Technology Co.Ltd(600507) the announcement on that day showed that the plan was adopted by the general meeting of shareholders. However, the reporter of the daily economic news noted that nearly 40% of the shareholders attending the meeting voted against it at the shareholders’ meeting on that day.
extended M & A
In just four days, the extraordinary general meeting of shareholders was held twice, and the second general meeting of shareholders considered the proposal to invest in the steel fund separately. It can be seen that the investment proposal may not have been fully “finalized” when the first extraordinary general meeting of shareholders was decided.
Fangda Special Steel Technology Co.Ltd(600507) secretary Wu Aiping also told the reporter of daily economic news that fashion is in the decision-making process.
According to Fangda Special Steel Technology Co.Ltd(600507) previous announcement, the company plans to jointly initiate the establishment of Jiangxi huxu iron and steel industry investment partnership (limited partnership) with related party Shanghai huxu. The total scale of the fund is expected to be 10 billion yuan (subject to the actual fund-raising amount in the future), and the company plans to invest 4 billion yuan as a limited partner.
Fangda Special Steel Technology Co.Ltd(600507) said that the above-mentioned funds mainly focus on equity investment in the iron and steel industry. If they subsequently invest in iron and steel enterprises, there is a risk of horizontal competition; If the follow-up investment leads to horizontal competition, the company and its related parties will formulate solutions for horizontal competition and disclose them in time in accordance with the provisions of relevant laws and regulations.
As Beijing Fangda Xinjiang International Industry Co.Ltd(000159) Investment Co., Ltd. (hereinafter referred to as Fangda International) is the indirect controlling shareholder of the company, Fangda international also holds 99.90% equity of Shanghai huxu; Shanghai huxu is a related party of the company, so this transaction constitutes a related party transaction of the listed company.
Fangda Special Steel Technology Co.Ltd(600507) said that the company and related parties jointly initiated the establishment of a fund, mainly focusing on equity investment in the iron and steel industry, which helps the company make use of the advantages and resources of all parties, comply with the situation of M & A and integration of the iron and steel industry, and promote the company to become bigger and stronger.
Wu Ping has revealed that it is inconvenient for the company to establish an extension fund, but has made it clear that Aiping has set up an extension fund.
Wu Aiping said that because there is no new capacity in steel now, M & A in the steel industry may come to an end in the next two or three years. “In the past two or three years, whether in Jiangxi province or outside Jiangxi, as long as there are good targets and meet our M & A requirements, we will buy them, because (according to) our group’s strategic objectives, there is also a goal for the output of steel”.
some shareholders are worried about the impact of dividends
Fangda Special Steel Technology Co.Ltd(600507) in the announcement of the resolution of the second extraordinary general meeting of shareholders in 2022, said that the foreign investment proposal involves related party transactions, and the related shareholders Fang Wei, Jiangxi Fangda iron and Steel Group Co., Ltd. and Jiangxi automobile leaf spring Co., Ltd. need to avoid voting on the proposal; None of the above affiliated shareholders attended the general meeting of shareholders.
Finally, the voting result of the proposal on foreign investment and related party transactions was 125788651, accounting for 603943%, 82388739, accounting for 395569%, and 101500 abstentions, accounting for 0.0488%.
Some shareholders who voted against said that such a large-scale investment may affect the company’s dividend when the annual report is about to be released. In the eyes of shareholders, Fangda Special Steel Technology Co.Ltd(600507) is a company with more generous dividends.
On March 17, 2021, Fangda Special Steel Technology Co.Ltd(600507) announced the 2020 annual report and profit distribution plan, and planned to distribute cash dividends of 11 yuan for every 10 shares to all shareholders, with the proportion of cash dividends as high as 110.81%.
The reporter found that Fangda Special Steel Technology Co.Ltd(600507) has paid cash dividends 13 times in 18 years since it was listed in 2003. The cumulative amount of cash dividends reached 10 billion yuan.
For the relatively high negative vote, Wu Aiping believes that the shareholders of Shanghai Stock connect mainly vote against it. Shanghai Stock connect has a feature. Shareholders may not disagree with this project, but it is easy to vote against related party transactions when the stock price and market situation are bad.
When it comes to whether dividends will be affected by investment, Wu Aiping said that Fangda Special Steel Technology Co.Ltd(600507) is not short of cash, and there is still a lot of cash flow, which will not affect dividends. “Of course, it’s hard to tell whether it’s specific, because the annual report will be published on March 18, and the announcement will prevail.”.
