Shougang Concord Sells Mt Gibson Stake to Fushan (Update1) Share...

Shougang Concord Sells Mt Gibson Stake to Fushan (Update1)

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By Tan Hwee Ann

Sept. 22 (Bloomberg) -- Shougang Concord International Enterprises Co., a Chinese steelmaker, agreed to sell a 14.34% stake in Australian iron ore miner Mount Gibson Iron Ltd. to Fushan International Energy Group Ltd.

The stake will be sold for HK$1.2 billion ($154 million) worth of Fushan shares, according to a statement filed by Shougang to the Hong Kong stock exchange today.

Shougang bought its stake in Mount Gibson last year when the Perth-based miner was seeking cash after customers defaulted on contracts. Shougang has also bought shares in Fushan in the past year, and today’s announcement means it will increase its holdings in Fushan to 23.3 percent from 20 percent.

Shougang will have a gain of HK$693.8 million with the stake sale, it said in the statement. The agreement needs the approval of the Australian government, it also said.

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