Bengang Steel Plates acquires logistics unit for $277 million

Bengang Steel Plates (SZSE:000761) will acquire 100% of Northern Hengda Logistics from its parent company, Bengang Group, for approximately $277 million (¥196.62 million). The transaction, classified as a related-party deal, values Hengda Logistics at its assessed value as of April 30, 2024. Post-acquisition, Hengda Logistics, currently a wholly-owned subsidiary of Bengang Group, will become a wholly-owned subsidiary of Bengang Steel Plates and be consolidated into its financial statements. The deal is expected to reduce intercompany transactions by approximately $471 million (¥33.54 billion) annually. The acquisition will leverage Hengda Logistics' existing infrastructure and strengthen Bengang Steel Plates' supply chain, while expanding its processing capabilities. The transaction has been approved by the board of directors and does not require shareholder approval.