It is reported that Hunan Valin Steel assets restructuring proposal was rejected by shareholder, ArcelorMittal.
According to the proposal, Valin Steel and its parent, Valin Group, will jointly inject assets and capital into a wholly-owned subsidiary of the listed company.
Following the proposed injection, the stakes held by Valin Steel and Valin Group in the subsidiary were to have increased to 69.77% and 30.23% stake respectively while the registered capital of the subsidiary will be boosted from CNY 5 million to CNY 600 million.
ArcelorMittal said the profitability of the listed company is still weak and the target assets to be injected have recently started production and face uncertainties in their earnings this year.
The global steel giant is concerned that the injection may increase uncertainties regarding Valin earnings.
Sourced from caijing.com.cn