Anyang Iron & Steel divests subsidiaries to controlling shareholder

Anyang Iron & Steel (SSE:600569) announced its plan to sell its entire 78.1372% stake in Angang Group Yongtong Ductile Iron Pipes Co., Ltd. and 100% stake in Anyang Yuhe Yongtong Pellet Co., Ltd. to its controlling shareholder, Anyang Iron & Steel Group. The total transaction value is 83,665.04 million yuan, based on audited and appraised values. This divestment will remove both companies from Anyang Iron & Steel’s consolidated financial statements.

Following the sale, a previously provided guarantee of 1.10 billion yuan to Yongtong Company for financing lease operations with Huishang Bank Financial Leasing Co., Ltd. will become a connected guarantee. Anyang Iron & Steel Group will provide a counter-guarantee for this obligation. The company's total outstanding guarantees, including those to controlled subsidiaries, amount to 466,463.128 million yuan, representing 176.20% of its latest audited net assets.

The transaction, approved by the board of directors with related parties abstaining, will proceed upon shareholder approval and aims to improve Anyang Iron & Steel’s asset structure and operating capital without affecting its core business or independence.