It is reported that one of the biggest Chinese steelmakers Baotou Steel Union will raise US$4.9 billion private share placement in order to buy assets from its parent and replenish working capital.
The Inner Mongolia-based company said in a statement that part of this amount (RMB 8.26 billion) will be obtained by selling shares in Shanghai stock market; the other part will be issued to seven investors, including state-owned Baogang Group.
The assets acquired from the parent company will reduced transactions and improve its self-sufficiency in raw materials, the company said in the statement.