OREANDA-NEWS. September 06, 2011. Baosteel Group and SASAC of Guangdong Province inked "Agreement on Reduction of Registered Capital and Change to Ownership Structure of Guangdong Iron & Steel Group Co., Ltd." and "Framework Agreement on Restructuring Guangdong Province Shaoguan Iron & Steel Group Co., Ltd.", reported the press-centre of Baosteel.     

According to the agreements, SASAC of Guangdong Province will reduce the investment and withdraw from Guangdong Iron & Steel Group Co., Ltd.; SASAC of Guangdong Province will transfer 51% equity of Shaoguan Iron & Steel Group Co., Ltd. to Baosteel Group free of charge,and maintain 49% in it.

The free of charge transfer is subjected to the approval of the State Council SASAC before implementation. If approved, Baosteel Group will become the controlling shareholder of Shaoguan Iron & Steel Group Co., Ltd.