Beijing Shougang Co., Ltd. said on 16 October 2026 that it will acquire a 19.60% stake in its subsidiary Shougang Zhixin Electromagnetic Materials (Qian'an) from 11 minority shareholders for no more than CNY3.015bn (about US$451m) in cash.
Why Beijing Shougang Co., Ltd. is buying Shougang Zhixin Electromagnetic Materials (Qian'an) Co., Ltd. (19.60% minority stake)
The company said the purchase would strengthen its control of Shougang Zhixin and give the subsidiary a more concentrated and stable shareholding structure, while allowing Beijing Shougang to focus on high-end, low-carbon steel sheet and to build on Zhixin's technology and market position in electrical steel.
Deal terms and financing
The 587,911,257 shares are priced at CNY5.1269 each, based on a valuation filed with Shougang Group. The sellers include investment funds and Beijing Shougang Fund and Beijing Shouxin Jin'an, which are related parties. The final total depends on how many shares the sellers sign over, as some had not completed internal approvals. The deal is funded from own and self-raised funds.
Regulatory approvals and timing
The board approved the transaction on 15 October 2026 with connected directors abstaining. It still needs approval at a shareholder meeting, at which Shougang Group must abstain. The company said it does not constitute a major asset restructuring.
Market context
Beijing Shougang had suspended its shares in March 2026 to plan a purchase of Zhixin shares using convertible bonds and cash. The minority investors came in under a 2024 shareholders' agreement. Shougang Zhixin, based in Qian'an, Hebei province, is Beijing Shougang's electrical steel (electromagnetic materials) subsidiary, with net assets valued at CNY15.38bn.
