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|Sinosteel To Recommend Delisting To Midwest Board|
|= Compulsory acquisition of remaining shares to take place promptly =|
Sinosteel Group, which has acquired a 98.52% interest in Australian iron ore supplier Midwest Corporation through a takeover bid, revealed September 17 that it will now proceed to compulsory acquisition of the remaining Midwest shares, and will ask the Midwest Board to proceed with the de-listing of Midwest from the Australian Stock Excxhange.|
Sinosteel President Tianwen Huang said Sinosteel had been very pleased with the success of the takeover offer which would drive further growth in the Midwest region and cement existing strong relationships between Sinosteel and Midwest. He also noted that Sinosteel's previous long experience in Australia would serve as a platform for relationships with all stakeholders in the region.
Sinosteel Group is a state-owned enterprise under the control of SASAC (*), having 57 subsidiaries in the country and 25 abroad. In 2007 it posted a total revenue of 111.2 billion RMB. The Group is engaged in exploration, development and processing of ferrous raw materials, foreign trade, logistics, engineering, and comprehensive services for the steel industry. It is conducting iron ore operation in Australia, and has an investment project for a chrome mine in South Africa. It is importing annually in excess of 20 million tons of iron ore destined for steel mills in the country. Regarding the Australian iron ore operation, the Group is jointly developing Channar iron ore mine in the Pilbara, Western Australia in partnership with Rio Tinto group.
In addition, Sinosteel Group is strengthening relations with domestic enterprises. In December 2007 and September 2008, it entered into strategic alliance agreements with Baosteel Group and Shougang Group, respectively, thereby consolidating its cooperative relationships with these leading steel companies. In May this year Sinosteel Group Binhai Industry reached an agreement with Baosteel Resources on the establishment of a joint venture to promote nickel business in Cangzhou city, Hebei Province.
* : State-owned Assets Supervision and Administration Commission in the State Council
|last modified : Thu 25 Sep, 2008 [11:06]|