Anyang Iron & Steel restructuring progresses, faces uncertainties

Anyang Iron & Steel (SSE: 600569) announced progress in its planned major asset restructuring involving an asset swap with its controlling shareholder, Anyang Iron & Steel Group. The proposed transaction involves Anyang Iron & Steel Group injecting a portion of the equity of Henan Anyang Iron & Steel Group Wuyang Mining Co., Ltd. into Anyang Iron & Steel, while Anyang Iron & Steel will transfer its entire stake in Anyang Yuhe Yongtong Ball Group Co., Ltd. and Anyang Yongtong Ball Group Co., Ltd., along with some environmental assets, to Anyang Iron & Steel Group. The difference will be settled in cash. The deal is expected to constitute a major asset restructuring and a related party transaction under listing regulations. The company cautioned that the transaction is still in the planning stage, dependent on internal and external approvals, and subject to potential termination. The company reiterated that the specific transaction plan is still under discussion and that the deal faces uncertainty.