Northern Rare Earth to see stake increase

China Northern Rare Earth Group High-Tech (SSE:600111) announced that its controlling shareholder, Baotou Iron and Steel (Group) Co. (Baogang Group), intends to increase its holdings in the company by between RMB 500 million and RMB 1 billion. Baogang Group will use its own funds and a special loan from Agricultural Bank of China for this purpose. The shares will be acquired through the Shanghai Stock Exchange trading system via a centralized bidding method, and the increased holdings won't surpass 2% of total shares. Baogang Group currently holds 36.84% of Northern Rare Earth's shares. The company intends to continue to monitor the progress of the holdings increase.