Hunan Valin Iron & Steel today also said it agreed to buy 225 million new shares from Fortescue, and 275 million shares from two Harbinger Capital funds, giving the Hunan-province steelmaker a total stake of 16.5 percent.
“Iron ore will be a hot spot this year in acquisitions and IPOs because China’s steel industry is expanding into raw material supply,” said Helen Wang, a Shanghai-based analyst with DBS Vickers.
Deutsche Bank AG advised Valin. JPMorgan Chase & Co., Azure Capital Pty and Grant Samuel & Associates Pty were hired by Fortescue.
AXO Price at posting:
11.0¢ Sentiment: LT Buy Disclosure: Held