Liugang plans to acquire the control right of Guangxi Iron and Steel by cash capital increase.

For the purpose of this transaction, Liugang said that there are four main reasons. First, it is conducive to solving potential competition problems in the same industry; Second, it is conducive to the company to effectively reduce production costs and logistics costs; Third, it is conducive to the company to improve the return on investment; Fourth, it is conducive to the diversification of the company's products and markets.

It is reported that Guangxi Iron and Steel is a holding subsidiary of Guangxi Liuzhou Iron and Steel Group Co., Ltd. (hereinafter referred to as "Liugang Group"), and Liugang Group is the controlling shareholder of Liugang Co., Ltd., so this transaction constitutes a connected transaction.

The announcement shows that after the completion of this capital increase, the registered capital of Guangxi Iron and Steel will increase from 654.38+08 billion yuan to 24 billion yuan. Among them, Liugang invested 1 1 billion yuan, accounting for 45.83% of the registered capital of Guangxi Iron and Steel, and obtained the control right of Guangxi Iron and Steel; Liugang Group contributed/kloc-0.09 billion yuan, accounting for 45.58% of the registered capital of Guangxi Iron and Steel. WISCO Group invested 206,200 yuan, accounting for 8.59% of the registered capital of Guangzhou Iron and Steel Group.