Chongqing Iron and Steel (601005.SH) announced that on June 11, 2021, the 39th meeting of the eighth session of the Board of Directors of the company and the 26th meeting of the eighth session of the Supervisory Committee examined and passed the "proposal on related transactions for the purchase of Longevity Steel assets", agreeing to the purchase of Longevity Steel's pre-iron assets.
The pre-iron assets of Longevity Steel purchased by the company are used for independent production and operation, which is necessary for the normal production and operation of the company, which can ensure the continuous and stable production of the company.
The object of this transaction is the machinery and equipment of coking, sintering and ironmaking processes (collectively referred to as "pre-iron assets"), which is owned by Longevity Steel, which is currently leased by the company. There is no mortgage, seizure, freeze and other circumstances that may affect the transfer of ownership of the former iron assets.
According to the evaluation report, as of August 31, 2020, the valuation of Tieqian assets is 3.447 billion yuan (excluding tax).
Both parties agree that the transaction price of Tieqian assets shall be set at RMB 3.551 billion (excluding tax) through consultation, taking into account the impact of the time period of payment by installments on the basis of the valuation contained in the evaluation report.
The pre-iron assets of Longevity Steel purchased by the company are used for independent production and operation, which is necessary for the normal production and operation of the company, which can ensure the continuous and stable production of the company. According to the needs of the development of the company, in order to implement the efficient upgrading of the whole process process equipment and build a 10-million-ton iron and steel enterprise, this transaction has a positive impact on the company.