Wuhan Iron and Steel Group’s Resource Integration Project_Overseas Operations_International Business_中企华
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International BusinessINTERNATIONAL BUSINESS

Wuhan Iron and Steel Group’s Resource Integration Project

Issue Time：2015-03-19 Source：CEA Author：CEA


The specific information of the project: Wuhan Iron and Steel (Group) Company (WISCO) intends to transfer 100% shares of its 4 subsidiaries i.e. WISCO Mining Co., Ltd., WISCO International Resources Development & Investment Co., Ltd., WISCO Brazil Metallurgical Investment Co., and WISCO Iron and Steel (Australia) Ltd., to the Wuhan Iron and Steel Co., Ltd., a listed company.


This resource integration project involves four legal entities, of which, three are located outside the country, and of the fourth company, half of its assets are treated as overseas assets and equity, specifically they are spread in Australia (South Australia, Western Australia), Canada (Quebec, Ontario), Liberia (State of Bong), and Brazil (Rio de Janeiro). The types of companies involved in vary from listed companies (listed in Canada, Australia and Brazil), to limited liability company, and unincorporated joint venture (CJV). And, the company’s asset types also involve real options and various forms of rights of return, in addition to the conventional assets.


Facing such complex shareholding structure and so huge amount of overseas assets, after the assessment report was filed with the SASAC, the members of China Securities Regulatory Commission (CSRC) at the Commission’s approval meeting, have largely put their focus on the valuers, a practice that is quite different from the previous pattern in which they mainly focused on brokerages, auditors, and lawyers, whether be it on key issues or general issues. So far, our team had prepared up to 26 pages to answer possible questions, and done the most detailed explanations to each of the overseas projects, evaluation procedures, evaluation methods, selection of the main parameters, and rationality of the operating and production data changes. Finally, just as benefited from the rich experiences of the valuers on the assessment of overseas assets, as well as their professional, rigorous and meticulous work style, this evaluation project was eventually approved unconditionally.



 

 




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