Beijing: Amid domestic concerns about foreign giants acquiring key state assets, China has asked Arcelor Mittal to pay more for a higher stake in Laiwu Steel, insisting that the global steel giant has “underestimated” the value of Laigang Group, the controlling shareholder of Laiwu Steel.
The National Development and Reform Commission said Arcelor had underestimated the value of Laigang Group, the controlling shareholder of Laiwu Steel, the state-run China Securities Journal reported. “The scheme for equity transfer is so far still under examination by related government authorities,” it quoted an unnamed source with Laigang Group as saying. Arcelor China Holdings (Luxemburg) inked the purchase contract with Laigang Group on 24 February 2006 to buy 38.41% of Laiwu Steel’s equity at 5.888 yuan (Rs32.3) per share. Arcelor will own 37.326% of Laiwu Steel according to amendments to the original purchase contract.