Baosteel completes 60% of share buyback plan

Shanghai Daily, April 3, 2013

Baoshan Iron & Steel Co, China's largest listed steel mill, said it has spent 2.96 billion yuan (US$476 million) repurchasing shares by the end of March, as part of its 5 billion yuan share buyback plan that started in September.

Tuesday's announcement meant the company has competed 60 percent of the plan. It said in August it would spend 5 billion yuan to buy back shares for no more than 5 yuan apiece. The highest price it paid was 5 yuan each while the lowest is 4.51 yuan.

Baosteel rose 0.63 percent to 4.83 yuan yesterday following the announcement.

Baosteel and other Chinese steel makers have been struggling with slowing demand and high cost of raw materials.

Over the weekend the company reported a 41-percent jump in 2012 net profit to 10.39 billion yuan, helped by the one-off sale of its loss-making stainless steel and specialty steel business to its parent.

Still, it posted a net loss of 0.4 billion yuan in October-December, the first quarterly loss in four years.