Chinese steel maker Shougang Holdings will pay HK$2.07 billion ($265 million) for 10.8 percent of coal producer Fushan International Energy, Fushan said, as the country's steel producers scramble to secure supplies of coal as prices for the fuel surge.
Shougang, the country's No. 6 steel maker, will pay HK$4.60 a share for 450 million new shares in Fushan, or a 6.3 percent discount to the firm's June 13 closing price before a trading suspension.
Under the acquisition agreement, Shougang will commit to buying at least 2 million tonnes of clean coking coal -- used in steel production -- from Fushan annually from 2009 onward.
Source: Reuters
No comments:
Post a Comment