ArcelorMittal dumps stake in Hunan Valin

Indian multinational steel giant ArcelorMittal has transferred 1.1 billion yuan ($165.9 million) worth of shares in Hunan Valin Steel Co Ltd to a Chinese fund, citing Valin's main business shift from steel to finance.


ArcelorMittal signed an agreement with Shenzhen Qianhai Eagle Fund Management Co Ltd on Tuesday for the sale of its 304 million A shares.


The shares will be held by China Reform Fund managed by Shenzhen Qianhai Eagle Fund. The shares account for 10.08 percent of the total shares of Valin.


ArcelorMittal said that the sale of the shares is because of Valin's major asset reorganization, which will turn its main business from steel to finance and environmental management.


Valin Steel is a State-owned enterprise based in Hunan province that went public on the Shenzhen Stock Exchange in 1999.


The company announced its restructuring plan in July to replace some of its steel assets with financial and power generation assets. The steel assets have been removed from the listed company to the group company.


The article transsshipment from China Daily