Bengang Steel Plates: Asset swap faces uncertainty

Bengang Steel Plates (SZSE:000761) has issued an update on its proposed major asset swap with Benxi Iron and Steel (Group) Co., Ltd., cautioning investors about the ongoing uncertainties surrounding the transaction. The proposed deal involves Bengang Steel Plates acquiring 100% equity of Benxi Iron and Steel (Group) Mining Co., Ltd., while divesting its existing assets and liabilities, excluding certain retained assets. The company emphasizes that the transaction terms, including the scope of assets and the consideration, are not yet finalized and still require further negotiation and due diligence. The company also warns that the deal could significantly increase related-party sales, potentially impacting its independent operations. Bengang Steel Plates advises investors to exercise caution, noting the possibility of adjustments, suspension, or cancellation of the proposed asset swap.