CITIC lists special steel company through Daye merger

Daye Special Steel says that its acquisition of Xingcheng Special Steel by its listed arm has been approved by the mergers, acquisitions and restructuring review committee of the China Securities Regulatory Commission. The company issued a notice confirming this on 28 July.Through this reorganisation, CITIC Special Steel, the special steel arm of the CITIC Group, will be listed with a combined capacity of 13 million tonnes/year, ShengHe notes. Daye Special Steel and Xingcheng Special Steel are both controlled by the CITIC Group, which will remame its consolidated listed arm CITIC Special Steel Group. According to the latest restructuring draft, Daye Special Steel intends to issue shares to purchase 86.5% shares of Xingcheng Special Steel with the transaction price of CNY 23.179 billion ($3.37 billion). The price of the issued shares is CNY 10/share. After the implementation of profit distribution of the listed company for 2018, the issue price will be adjusted to CNY 9.20/share. Daye expects its net attributable profit to increase by 660% to CNY 3.88 billion after the merger. In 2018, Daye posted CNY 12.57 billion in operating revenue and CNY 510m in net attributable profit.