Hebei Province-based Chinese steelmaker Xinxing Ductile Iron Pipes Co., Ltd. (Xinxing Ductile Iron Pipes) has announced that its controlling shareholder Xinxing Cathay International Group plans to increase its stake in the company, investing a value not less than RMB 150 million ($21 million), while not exceeding RMB 300 million ($42 million), and also not exceeding two percent of the company’s total share capital.
The sources of funds for increasing the stake in Xinxing Ductile Iron Pipes will include proprietary funds or bank loans specifically for share buybacks. Xinxing Cathay International Group has obtained a loan commitment of no more than RMB 270 million ($37.6 million).