On the evening of April 24, Xinyu Iron & Steel Co.Ltd(600782) announcement disclosed that on April 23, Jiangxi state-owned holding, which holds 100% equity of Xingang group, the controlling shareholder of the company, signed a free transfer agreement of state-owned equity with China Baowu. According to the agreement, Jiangxi state control will transfer its 51% equity of Xingang group to China Baowu free of charge. After the transfer, China Baowu will indirectly control Xinyu Iron & Steel Co.Ltd(600782) 4481% of the shares through Xingang group and realize the control of the company. The actual controller of the company will be changed from Jiangxi SASAC to SASAC of the State Council. The direct controlling shareholder of the company remains unchanged and remains Xingang group.
The announcement said that the transfer still needs to perform the necessary examination and approval procedures such as the examination and approval of the state-owned assets supervision and administration authority. There is still uncertainty about whether it can obtain the relevant approval and whether the transfer can be implemented smoothly.
It is worth noting that since the merger of Baosteel and WISCO into China Baowu, China Baowu has opened the road of expansion, and has successively announced the reorganization of Maanshan Iron and Steel Group, Taiyuan Iron and Steel Group and Shandong Iron and steel group. At the beginning of 2022, China Baowu announced the strategic iteration and upgrading, and clearly put forward the vision of “becoming a leader in the global iron and steel and advanced materials industry”. According to the official wechat article of China Baowu, the group will continue to promote the joint reorganization from the new starting point of “100 million tons of Baowu”, strive to reach 200 million tons of crude steel by 2025, achieve a global market share of 15% by 2035, and further improve the industrial concentration and market share.
