Metal Products News
- Liaoning News
Date: 12-Apr-2007 Sources: (Shenzhen Daily)
ANGANG Steel Co. said yesterday it planned to raise up to US$4 billion in a rights issue to fund its Bayuquan steel production project in Liaoning Province.
The Hong Kong and Shenzhen-listed steelmaker also said its 2006 net profit more than tripled to 7.09 billion yuan (US$917 million) from 2.12 billion yuan the previous year, beating a mean forecast of 6.62 billion yuan from 16 analysts.
Angang said in a statement that it proposed to issue up to 1.78 billion new rights shares to finance its total investment of 22.6 billion yuan in the Bayuquan project at Yingkou Port, which will provide Angang with an additional annual production capacity of 5 million tons of steel products.
The Bayuquan project will require a total of about 7.3 million tons of raw materials in the form of iron ore, the majority of which will be imported, Angang said.
The government said Tuesday it will cut tax rebates on some steel exports.
'Investors won't like this plan much partly because the government is tightening steel exports to curb expansion,'' said Zhu Limin, analyst at Shanghai Securities Co.
The rights issue will be allocated at between 2 and 3 rights shares for every 10 existing shares held at a price yet to be determined.
Sponsor Results:
