This is a bunch of suspense, drama reorganization of concern. This is a funding across the country, private ownership of a difficult two attempts, and has aroused, "the country back into" and many other disputes. Two years, the high-profile signing of the Mountain Steel Group (hereinafter referred to as the mountain of steel) to restructure the Rizhao Steel Holding Group Co., Ltd. (hereinafter referred to as Japanese steel) protocol, is still just a piece of paper preserved in the "important documents", or even into a situation exists in name only .
November 30, the day is open source after Rizhao Steel shareholders holding announcement, Mountain Steel restructuring at the steel deadline.
However, this deadline, there is no any official information about the restructuring.
"The mountains of steel the game is completely re-Nippon Steel, the Working Group has long been dismissed." Nov. 30, with a mountain of steel, Nippon Steel has access to high-level insider said.
Gangster's five-year plan
Sudden reorganization took place in October 30.
"This is the first time on the development of steel five-year plan to enable on steel from the 'big' to do 'strong'. All units must carefully prepared production plans in 2011 and future five-year development plan." October 30 , chairman of Du Shuanghua Rizhao Iron and Steel said in an internal meeting.
November 5, 2008, Mountain Steel and Nippon Steel signed a restructuring agreement that was widely disseminated in the official ceremony, Du Shuanghua has been low-key, rarely appears in public, and even rarely seen in the Japanese steel.
Meanwhile, Rio Tinto, on the Du Shuanghua involves carrying case and Du Shuanghua possible reorganization of the cash on steel, he moved to the capital market rumors, has continued, but did not get his own back.
Ching Ming Festival this year, this newspaper I worked in the Hebei home, see long-lost appearance of Du Shuanghua, the problem facing the author is silent.
In restructuring the beginning, through the earthquake contributions 1 billion boost borrowing power of the media, setting off "the country back into" the discussion, trying to change "was re-" Du Shuanghua fate, the attitude of silence and all sorts of rumors, it seems, are harbingers of re- inevitable.
October 30, from the restructuring period of one month, Du Shuanghua suddenly high-profile appearance, surprisingly enough, and its five-year plan announced by Nippon Steel, is called "restructuring Sudden."
"Lao Du So almost announced a reorganization into an impasse." Steel high-level contact with Japan for many years the source said.
"Stronger not only means that the number of the upgrade, but including personnel training, construction of spiritual civilization, including the full range of professional spirit and the level, up the steps." Du Shuanghua in the internal evaluation by the Japanese steel historic the meeting said.
Du Shuanghua revealed the meaning of words, Nippon Steel as if there is no sign of reorganization.
Meanwhile, another Japanese steel core top, very position characteristics of party secretary Liaohai Ting emphasized the "three changes."
Three changes means: to restructure our thinking from the center to the production and management as the center; to do everything possible to more evaluation, more than make money, to do everything possible to do business, engage in management, more money, improve the efficiency of; put all their energy from the consideration to re-focus turned to pay close attention to business development center.
November 5, the important news as the company board meeting at the parent company of steel on steel, the official website Metropole.
"Wrong in it." Nov. 30, the face of the author's questioning, Du Shuanghua quietly rejected, on the restructuring to remain silent.
Japanese steel, steel re-Shan, this has always been considered the steel industry consolidation will be the banner event, completely stranded.
"Valuation has been determined to be 100 billion, Du Shuanghua order to improve the price tag should not be." My steel mesh, said Wang Jianhua, director of research at this time Du Shuanghua throw five-year plan to improve the price tag of the impact has been small.
"Last year on September 6, Mountain Steel and Nippon Steel signed a restructuring agreement for the first time, but when August 30 this year, the restructuring plan has changed, re-extended to the date the assets of other steel-related assets. The current assessment and not the end, the evaluation report has not yet come out, how the valuation is too high mountains of steel meet resistance because of a say? "at five-year plan of steel thrown, the mountain of steel executives had to respond.
But the assessment is not the end of the argument, as with the Du Shuanghua five-year plan, is considered to be "talking to itself."
"Beginning, asset evaluation team has withdrawn Japanese steel." November 29, Shandong Economic Herald, a Nippon Steel was to visit the author said.
Restructuring deadline looming, "not complete the assessment," the assessment team to withdraw, it is clear anomaly. Analysts said Wang Jianhua, iron and steel business operations between enterprises is quite complex, as an external one which is difficult to see out the details, saying the two sides reorganization, it may not reflect the true intentions.
One can assume that the fact that reluctant "to be restructuring" of the Du Shuanghua, from the initial date of public momentum to the later holding of steel assets into the open source, has two sets of restructuring, has been talking to the Government on behalf of the will of the mountain in Shandong Steel Group tirelessly doing the "interests of the deal."
Steel Mountain of Steel at the initial restructuring program, will set up a steel mountain Rizhao, Shandong Iron and Steel Group Co., Ltd., the two sides "to the common way to its capital increase asset restructuring." Among them, the mountain of steel in cash, representing 67% of the shares; Nippon Steel's core assets to net assets of the shares, accounting for 33% of the shares.
This program were published, as a tangled relationship with the local government's private bosses, Du Shuanghua not afford to compete directly, by Nippon Steel core assets into listed companies in Hong Kong stocks open-source investments, the use of the relevant securities laws of Hong Kong, forcing changes in restructuring Mountain Steel program.
August 30, the second restructuring agreement that "will be a one-time restructuring and acquisition related assets of the company Rizhao Steel manner." This means that Du Shuanghua assets can be realized.
Earlier media reports, in accordance with the assessment results, the mountain of steel on steel, to a one-time buyout of the net assets, to pay about 8 to 10 billion yuan in cash.
Analysts said Wang Jianhua, which is restructuring the price for both sides have accepted.
However, eventually leading to the reasons for restructuring in dire straits, both Mo deep taboo, is still only one set of leadership, there is no strong support of the Shandong Iron and Steel executives of assets of collective silence.
"I sincerely tell you that it can not say." Nov. 30, had been a vice president of Mountain Steel spokesman Wang Lifei, it is difficulty to explain again and again later, claimed that "every other thing in the past had to say" .
Mountain Steel short of money?
"Reasonable funding can be, after all assets have been identified after assessment." Wang Jianhua analysis said that this is the only realistic at steel and Du Shuanghua interest demands.
"If it is once again raise the price tag on steel, Du Shuanghua not have such a high-profile 5-year plan." Sunshine Development and Reform Bureau, said a responsible person, in a weak position in the reorganization of the Japanese steel, not so high-profile asking price of capital.
100 billion in cash, the agreed price tag, Du Shuanghua once again raise the price tag is not the space.
Since there was no material on the restructuring of steel obstacles, leading to reorganization of the reasons for grounding, it seems that only a mountain of steel re-funds are not in place.
The fact that, as of the third quarter, the mountain has just started restructuring its steel, Jinan Steel and Laiwu Steel, the sum of monetary funds is only 14 billion.
In early 2008 listing, restructuring Jinan Steel, Laiwu Steel is just a shell before the establishment of Shandong Iron and Steel Group, Shandong provincial government clearly does not meet the anticipated difficulties.
Second half of 2008, the financial crisis, including the Mountain Steel Group, including iron and steel enterprises in China suffered heavy losses, the loss is huge. Among them, the mountain of steel until the aftermath of the loss in May 2009.
Late last year, just pick up the mountain and Steel Group, suffered iron ore price increases. To this end, in July of this year, Mountain Iron and Steel Group decided to spend 1.5 billion acquisition of 25% interest in African mining. 1.5 billion, just the amount of funding the acquisition of Nippon Steel close.
The second half of this year, 80% of the mountain of raw materials imported steel, the impact of price increases of raw materials began to appear, Jinan Steel, Laiwu Steel once again a loss. The third quarter's loss of two listed companies totaling 422 million yuan, of which 233 million loss Laiwu Steel, Jinan Iron and Steel loss of 189 million shares.
Meanwhile, the Shandong provincial government of sunshine pushing quality steel base project, the delay has not been the central financial support, the estimated cost of a project to more than 800 million items still remain in the scattered infrastructure level.
There is no central financial support, the leading integrated steel Fang Shandong Shandong provincial government, can not re-Nippon Steel, Shandong Iron and Steel provide the expected financial support.
According to Hill Steel, as of June this year, Shandong Steel Group's total assets of 124.119 billion yuan, of which the total liabilities of 86.824 billion yuan, asset-liability ratio as high as 69.95%. Last year, Baosteel, Hebei Iron and Steel, Sha Steel and other major steel companies of assets and liabilities, the liabilities of the highest mountain Steel Group.
Meanwhile, the impact of substantial increase in inventories, operating cash flow -15.31 billion.
Been thrown in the Shandong Iron and Steel huge financing plan before the funds are not actually in place, has been declared "not bad money," the mountain of steel, one-time payment of 100 billion recapitalization apparently reluctantly.
Mountain Steel lack of money, media speculation has been in dire straits as the reorganization of the underlying factors.
Thinking of Lao Du
Du Shuanghua five-year plan, announced a restructuring of steel on steel stranded mountain. However, even I would not expect at Du Shuanghua steel back in time.
Shandong Development and Reform Commission position, re-stranding is only wishful thinking on the steel.
"Chinese society, many issues are complex, simply by deciding to defer to the second five-day Mountain Steel Steel reorganization is not reliable." Jian-Hua Wang said.
In Wang Jianhua view, Du Shuanghua 5-year plan, but a businessman and again to seek maximum benefits calculations. "Nippon Steel's acquisitions have been ignited, so that people across the company instability, Lao Du proposed five-year development plan is mainly to stabilize people's minds, the confidence of the company staff." Wang Jianhua that this is the primary purpose of Du Shuanghua.
Re stranded in the premise, to stabilize the company people, good production work, for the Du Shuanghua, the role can play a double-edged sword.
Japanese Steel re-passed the deadline in the short term restructuring is unlikely. According to publicly available information on steel in 2007, Nippon Steel has already reached 50 billion net profit in 2009, continued turmoil in the reorganization cases, a profit of 40 billion.
On this basis, Nippon Steel to maintain its normal operation in Du Shuanghua 5 years, at least 200 billion can still profit. Even so, the ideal state can not be achieved, as long as stability of the Japanese steel production, Du Shuanghua capital also has a wait and see, once the reorganization plan could not resist the restart, it still has enough bargaining chips.
Strong support for the Government to rely on, staggering in terms of departure of the Shandong Iron and Steel, restructuring stranded, apparently is a difficult Kaner.
October 15, Mountain Iron and Steel Group and Calyon, HSBC, Standard Chartered Bank and other international financial institutions signed a $ 305,000,000 international syndicated loans. October 26, Mountain Iron and Steel Group public offering a year of 30 billion yuan of short-term financing bonds.
Both of these funds are considered to be at Mountain Iron and Steel Group for the restructuring of steel, made by targeted financing plan.
Earlier, at the end of June this year, Hill won Steel Group was 144.697 billion yuan credit line, of which 82.652 billion yuan has not yet used.
However, the high debt ratios and the principal business of the losses, so that mountain of steel continues to be difficult to achieve the pace of expansion.
Sly deceitful cloud wave, continuing more than two years on the mountain of steel re-steel case, after the sudden desperate depression, the merger of the road is even more remote.
"After all, Hill is a large state-owned steel companies, each of the matters will take time, operational planning, or take a long time. Reorganization deferred to the second is inevitable during the five." Wang Jianhua analysis said.