2012-08-29

Baosteel plans to buyback 20 percent of outstanding shares

Share buyback plan to cost Baosteel 5b yuan
Baoshan Iron and Steel Co Ltd, the country's biggest steelmaker, plans to spend 5 billion yuan ($786.88 million) to buy back its own shares for no more than 5 yuan a share.

The decision comes after the company's stock value declined to a new low and will make the Shanghai-based steelmaker, commonly known as Baosteel, the country's first blue-chip company to buy back its own shares this year. Analysts have said they expect other companies in the same league to soon conduct similar transactions.
The steel industry has trouble ahead due to overcapacity, but Baosteel's shares are trading around their lows of the past 12 years.

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