Nov. 27, 2012 (China Knowledge) - Wuhan Iron & Steel Co<600005
>, one of the leading iron and steel makers in China, has said it plans to raise not more than RMB 15 billion through a rights issue.
In a statement, the Shanghai-listed
firm said it intends to issue no more than 4.2 billion A shares and Wuhan Iron and Steel (Group) Corp or WISCO, the parent company of Wuhan Iron $ Steel Co, will subscribe at least 10% of the total.
All the proceeds will be used to acquire several mineral resource from its parent company, including 100% stake in Wuhan Iron & Steel Group Minerals Co Ltd and a 100% stake in WISCO International Resources Development & Investment Limited.
The company said the purchase of mineral resource will enhance its core competitiveness, contributed to stabilize the fluctuations in iron ore price and reduce the risk of production and operation.
In the first nine months of this year, Wuhan Iron & Steel Co realized RMB 67.2 billion in operation revenue, down 12.5% YoY, while its net profit for the period were RMB 333 million, plunged 80% from a year earlier.