Fangda Special Steel shareholder plans increased stake

Fangda Special Steel Technology (SSE:600507) announced its controlling shareholder, Fangda Iron & Steel, plans to increase its stake in the company over the next six months. The proposed investment will range between RMB 55 million and RMB 110 million, representing no more than 2% of the company's total share capital. Fangda Iron & Steel will determine the timing based on the company's share value and market conditions. The funding will come from the shareholder's own capital and a dedicated loan of up to RMB 100 million from Shanghai Pudong Development Bank. Fangda Iron & Steel currently owns 39.02% of Fangda Special Steel's shares. The shareholder has pledged not to reduce its holdings within six months of completing the share increase plan.