On May 23, Baosteel Co.,Ltd. releases announcement that the company's repurchase plan has been implemented and completed on May 21. This repurchase reaches a total cost of $ 5 billion yuan (including commission). In the meantime, the highest bid price is 5 yuan / share and the minimum bid price 4.51 yuan / share. The total repurchase size reaches 1.04 billion shares, representing about 5.9% of the company's former total share capital (before cancellation of part of repurchase shares ). Since the first "hit" last September, this repurchase takes totally eight months.
To safeguard the interests of shareholders, enhance investor confidence and maintain company stock price, Baosteel Co.,Ltd. holds second extraordinary general meeting on September 17, 2012 and passes the act of "company stock repurchase by centralized auction trading" and on September 21 discloses "Baosteel Co., Ltd. repurchase report". According to repurchase report, Baosteel Co.,Ltd. will pass in the general meeting that they will repurchase company share within twelve months from the date of passing repurchase plan with the price of no more than 5 yuan per share. The repurchase maximum fund is 5 billion yuan.
Baosteel Co.,Ltd. implements repurchase for the first time on September 21, 2012 and releases "Baosteel Co., Ltd.'s announcement.on first implementation of repurchase" on September 24. Baosteel Co.,Ltd.'s implementation of stock repurchase plan is recognized by the majority of investors. Baosteel Co.,Ltd. executives have repeatedly said that the company will complete the repurchase within the commitment amount according to market situation.
The announcement indicates Baosteel Co.,Ltd. repurchase amount is 1,040,323,164 shares, representing about 5.9% of the company's former total share capital (17,512,048,088 shares), and 23.7% of original flow capital after deducting Baosteel Group Co., Ltd.'s holding (4,383,222,821 shares); The repurchase amount after deducting 390,000,000 shares of cancelled stock is 650,323,164 shares, representing approximately 3.8% of the company's present total share capital (17,122,048,088 shares).
Baosteel Co.,Ltd. says that the company has applied to Shanghai Stock Exchange and China Securities Depository and Clearing Co., Ltd. Shanghai Branch for cancellation of 650,323,164 shares. The stock cancellation date is May 23, 2013. This share change will reduce 65,032 yuan in the company's share capital and 254,894 yuan of its capital surplus. Assuming other conditions remain unchanged, this share capital change will help to enhance net asset per share and earning target per share.