<article>Hong Kong-listed Chinese conglomerate CITIC Limited on Wednesday announced that it is restructuring its special steel business by consolidating the assets under the Shenzhen-listed entity Daye Special Steel.</article>

Hong Kong-listed Chinese conglomerate CITIC Limited on Wednesday announced that it is restructuring its special steel business by consolidating the assets under the Shenzhen-listed entity Daye Special Steel.
As part of the restructuring exercise, Daye Special Steel, in which CITIC indirectly owns a 58.13 per cent stake, has signed an agreement to acquire 86.5 per cent interest in Jiangyin Xingcheng Special Steel through the issuance of new shares at 10 yuan per share.
Currently, Jiangyin Xingcheng Special Steel&#8217;s assets include four special steel plants, one pellet plant and one coking coal plant. CITIC indirectly holds a 90 per cent interest in Xingcheng Special Steel.
According to CITIC, the total consideration of the transaction has been preliminarily set at 23.18 billion yuan ($3.3 billion). Upon completion of the deal, CITIC is expected to hold 83.52 per cent of the enlarged Daye Special Steel.
&#8220;The special steel business is a key component of CITIC&#8217;s non-financial sector. By restructuring and listing our special steel assets, the capital markets can properly value this business for the benefit of all our shareholders,&#8221; said CITIC chairman Chang Zhenming.
CITIC said the restructuring will unlock the true value of its special steel business through the capital markets and maximise shareholder value for shareholders. The Chinese firm also expects the restructuring exercise to enable the special steel business to tap the capital markets and gain greater access to financing options.
The transaction is subject to approval by Daye Special Steel’s shareholders at a general meeting and by the relevant regulators.
CITIC&#8217;s special steel business is managed by CITIC Pacific Special Steel, which claims to be the largest dedicated special steel manufacturer in China, with an annual production capacity of 13 million tonnes. Its major products include bar steel, plates, seamless steel tubes, wire steel, forging steel and casting billets, which are widely used in auto components, energy, machinery, oil and petrochemicals, transportation, shipbuilding and other industries.
Focusing primarily on financial services, resources and energy, manufacturing, engineering contracting and real estate, CITIC is 58 per cent owned by CITIC Group Corporation, a Chinese state-owned enterprise.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/chinese-brokerage-citic-securities-to-acquire-local-rival-in-expansion-push-115252/">Chinese brokerage Citic Securities to acquire local rival in expansion push</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/citic-amoy-ajinomoto-111481/">CITIC Capital buys cooking sauce maker Amoy Food from Japan’s Ajinomoto</a>

Chinese conglomerate CITIC Limited is restructuring its special steel business by consolidating the assets under the Shenzhen-listed entity Daye Special Steel.

China's CITIC announces restructuring of special steel business

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

China's CITIC announces restructuring of special steel business

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief