BEIJING, March 24, 2016 /PRNewswire/ -- General Steel
Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI),
announced today that the Company, along with its 1% minority
interest holder, have jointly signed an equity transfer agreement
(the "Agreement") to sell 100% of the equity interest in Maoming
Hengda Steel Co., Ltd., ("Maoming Hengda") to Tianwu Tongyong
(Tianjin) International Trade Co.,
Ltd, ("Tianwu Tongyong") for RMB331.3
million or approximately $51
million.
The Company expects to receive total proceeds of RMB328.0 million (approximately $50 million), of which RMB262.3 million (approximately $40 million) will be paid within five days after
the signing of the Agreement, and the remainder RMB65.7 million (approximately $10 million) will be paid within one year.
The Company estimates that it will be able to realize a net
equity gain of RMB452.7 million
(approximately $70 million), which
should substantially enhance its net book value.
Henry Yu, Chairman and interim
Chief Executive Officer of General Steel commented, "Today's
announcement is another critical step in the Company's business
transformation, which also included the recently-completed sale of
the Company's steel manufacturing business. This transaction
allowed us to unlock the value in Maoming Hengda's land assets,
which we believe should greatly enhance our capital structure and
solvency, enabling us to strengthen our existing business while
exploring additional business opportunities."
About General Steel
General Steel Holdings, Inc. is headquartered in Beijing, China, and trades iron ore and steel
products. To be added to the General Steel email list to receive
Company news, or to request a hard copy of the Company's Annual
Report on Form 10-K, please send your request to
investor.relations@gshi-steel.com.
About Tianwu Tongyong
Tianwu Tongyong (Tianjin)
International Trade Co., Ltd is a joint venture, which is 40% owned
by Tianjin Material and Equipment Group Corporation, a global 500
Enterprises, 32% owned by General Steel's subsidiary, Tongyong
Shengyuan (Tianjin) Technology
Development Co., Ltd., and 28% owned by an unrelated third
party.
Forward-Looking Statements
This press release may contain certain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on management's
current expectations or beliefs about future events and financial,
political and social trends and assumptions it has made based on
information currently available to it. The Company cannot assure
that any expectations, forecasts or assumptions made by management
in preparing these forward-looking statements will prove accurate,
or that any projections will be realized. Actual results could
differ materially from those projected in the forward-looking
statements as a result of inaccurate assumptions or a number of
risks and uncertainties. These risks and uncertainties are set
forth in the Company's filings under the Securities Act of 1933 and
the Securities Exchange Act of 1934 under "Risk Factors" and
elsewhere, including those disclosed in the Company's most recent
Annual Report on Form 10-K, filed with the United States Securities
and Exchange Commission. Forward-looking statements contained
herein speak only as of the date of this release. The Company does
not undertake any obligation to update or revise publicly any
forward-looking statements, whether to reflect new information,
future events or otherwise.
Contact Us
Asia Bridge Capital Limited
Carene Toh
Tel: +1-888-957-3362
Email: generalsteel@asiabridgegroup.com
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SOURCE General Steel Holdings, Inc.
