GRR Valuation, page-134

Shagang may be able to claim tax credits on the dividend's they receive from Grange. This webpage specifies how Chinese holding companies are taxed on income from foreign subsidiaries:

https://www.jonesday.com/en/insights/2010/01/china-clarifies-rule-on-foreign-tax-credits

"If a resident enterprise operates abroad through a subsidiary, the income earned by the subsidiary normally is not taxable in China until the profits of the subsidiary are distributed to the resident enterprise. Upon the dividend declaration, the resident enterprise may claim foreign tax credit for the income tax paid by the subsidiary and attributable to the dividends. In order to qualify for the indirect foreign tax credit, a resident enterprise must directly or indirectly own at least 20 percent of equity interest in a foreign enterprise."

Shagang may want dividends just as much as every other shareholder.