General Steel Holdings, Inc. acquires remaining 30% outstanding shares of its subsidiary from the BVI company
China’s first US publicly traded steel manufacturer, General Steel Holdings, Inc., has published a press release saying that it agreed to acquire from Victory New Holdings Ltd. the remaining 30% outstanding shares of its subsidiary, Tianjin Daqiuzhuang Metal Sheet Co., Ltd. The sole shareholder of Victory New Holdings, registered in the British Virgin Islands, is mother of the Chairman and Chief Executive Officer of General Steel.
For the acquisition, General Steel Holdings agreed to issue an aggregate of 3,092,899 shares of its Series A Preferred Stock, at a price of $2.00 per share. The new shares will have voting power of 30% of the combined voting power of GSHO’s common and preferred stocks. According to an independent appraisal report, the appraised value of the 30% interest is $9,304,796, but the purchase price is $ 6,185,797.
After the closing of the acquisition, General Steel Holdings, Inc. will own 100% of BVI company’s subsidiary Daqiuzhuang Metal. Daqiuzhuang Metal is the producer of hot-rolled steel sheets used mainly in the construction of small agricultural vehicles; the company has a 50% China market share in this product niche.