General Steel To Sell Maoming Hengda For $51 Mln

(RTTNews) - General Steel Holdings Inc. (GSI) announced that the company, along with its 1% minority interest holder, have jointly signed an equity transfer agreement to sell 100% of the equity interest in Maoming Hengda Steel Co., Ltd., to Tianwu Tongyong (Tianjin) International Trade Co., Ltd, for RMB331.3 million or approximately $51 million.

The company expects to receive total proceeds of RMB328.0 million or approximately $50 million, of which RMB262.3 million or approximately $40 million will be paid within five days after the signing of the Agreement, and the remainder RMB65.7 million or 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 or approximately $70 million, which should substantially enhance its net book value.