An environmental technology firm listed on the new Beijing Stock Exchange has filed plans to acquire an energy unit of state-owned Baotou Iron and Steel Group, reports Caixin. The filing, worth $73.6 million, is the first large asset acquisition made on the recently opened bourse.
Beijing ZHTD Environmental Protection Technology plans to purchase a 34% stake in Baotou Steel Group Energy Conservation and Environmental Protection Technology Industry, ZHTD disclosed Wednesday. The deal will include a RMB 209 million ($32.9 million) purchase of newly issued shares of the Baotou Steel unit and a RMB 259 million ($40.75 million) stake purchase from the current controlling shareholder, according to a ZHTD filing with the Beijing exchange.
The stake purchase qualifies as a major asset revamp subject to disclosure and regulatory review under market rules. The Beijing bourse sent inquiries to ZHTD requesting more information about its cash flow, financing arrangements and the deal’s impact on its financials as well as the Baotou Steel unit’s business details.