November 21 -- Steelmaker Beijing Shougang (000959.SZ) will swap its non-productive assets and its No. 1 wire rod factory for all the assets of Hebei Shougang Qian’an Iron And Steel, a company owned by parent China Shougang Group Corporation, reports Xinhua, according to a company announcement.

Based on an assumption of continuous operation, the assets to be swapped-in are estimated to be valued at 18 billion yuan, while the value of Beijing Shougang’s non-productive assets and wire rod factory to be swapped-out is projected to be worth 5.3 billion yuan as of December 31, 2010.

The difference will be made up for by the issuance of up to three billion shares at 4.29 yuan per share by Beijing Shougang to China Shougang Group Corporation.

The assets of Hebei Shougang Qian’an Iron And Steel to be injected have annual production capacity of eight million tons of steel products.

In addition, China Shougang Group Corporation said it will inject the assets of its mining unit into Beijing Shougang in the next three years.
 

Source:CapitalVue