Huabao investment to boost stake in Chongqing Iron & Steel

Huabao Investment, along with its 13 concerted parties (including China Baowu, Chongqing Changshou Steel, and Baowu Zhongnan Steel), will acquire A-share stock in Chongqing Iron & Steel Company Limited. Huabao Investment will subscribe to 1 bn yuan worth of A-shares in Chongqing Iron & Steel Company Limited through a private placement. This transaction will increase Huabao Investment's direct stake in Chongqing Iron & Steel Company Limited from 1.5529% to 9.3142%, and the combined stake of Huabao Investment and its concerted parties from 29.51% to 35.07%.

The cash acquisition aims to support the company's sustained growth and enhance its risk resilience. This transaction, approved by Huabao Investment’s board and Chongqing Iron & Steel’s board of directors, triggers a waiver from a general offer obligation, as the combined shareholding will exceed 30%. The transaction awaits approval from Chongqing Iron & Steel's shareholders and the China Securities Regulatory Commission, among other regulatory bodies.

Huabao Investment, ultimately controlled by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) through China Baowu, confirms that the acquisition funds are from its own or self-raised capital and are legally sourced. The company and its concerted parties have committed to avoiding new related party transactions and competition with Chongqing Iron & Steel.