On 31 May 2019, Anhui SASAC and China Baowu have entered into the Agreement, pursuant to which, upon the Agreement becoming effective and at completion, Anhui SASAC will transfer 51% of the equity interest held by it in Magang Group to China Baowu at nil consideration. The remaining 49% equity interest in Magang Group will remain to be held by Anhui SASAC.

China Baowu is wholly owned by SASAC. After the Equity Transfer, the de facto controller of Magang Group (the holder of A shares representing approximately 45.54% of the total share capital of the Company) will change from Anhui SASAC to SASAC. The direct controlling shareholder of the Company will remain unchanged and still be Magang Group.

The Equity Transfer may, upon its completion, result in the obligation of China Baowu to make a mandatory general offer for all the shares in the Company other than those owned or agreed to be acquired by China Baowu or parties acting in concert with it under the Takeovers Code, unless waived by the Executive. As informed by Magang Group, (i) China Baowu has applied to the Executive for a waiver in respect of its obligation to make a mandatory general offer for all the shares in the Company pursuant to Rule 26.1 of the Takeovers Code as a result of the Equity Transfer; and (ii) the completion of the Equity Transfer shall be subject to, among other things, the granting of the said waiver to China Baowu in respect of the obligation to make a mandatory general offer for all the shares in the Company other than those owned or agreed to be acquired by China Baowu pursuant to Rule 26.1 of the Takeovers Code. As of the date of this announcement, the waiver application will be referred to the Takeovers Panel for a ruling. Such waiver may or may not be granted. China Baowu has informed the Company that should the waiver applied for be unavailable, it will review whether or not and how best to proceed with the Equity Transfer in the circumstances, and a general offer may or may not be made. The Company shall make further 2 announcement(s), as appropriate, in the event of any material development

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Source from Masteel