Yunmei Energy plans to raise 900 million yuan to acquire Kunming Steel Mine

Yunnan Coal Energy Co., Ltd. ("Yunnan Coal") announced on Wednesday evening that the company intends to raise no more than RMB 900 million through a private placement, and acquires the controlling shareholder Kunming Steel Holdings Co., Ltd. (abbreviated as "Kim Steel Holdings"). The company holds 100% equity in the four coal mines. The additional issuance price is not lower than 13.07 yuan per share, and the corresponding number of shares is no more than 68.86 million shares. If the transaction is approved, Yunmei Energy will expand in the upper reaches of the industry and it is expected to realize the integration of “coal-coke-gas” industry.

According to reports, the issuance of this issuance plan indicates that the commitment of the controlling shareholder in the case of * ST Malong is expected to be realized, but it still needs approval of the general meeting of shareholders and the government. Kunming Steel Holdings has promised that the number of cash issuance and issuance of additional shares is not less than 20%, which means that Kunming Steel Holdings will use about 180 million yuan in cash. Three months ago, when Kunming Steel Holdings borrowed shells, it not only injected Kunshan Iron and Steel Coking Assets, but also paid 177 million yuan in cash.

According to the transaction plan announced by Yunmei Energy, the company will raise funds of approximately RMB 900 million through non-public issuance of stocks (oriented private placement) to acquire the four coal mine assets that Kunming Steel Holdings has promised to inject before the time of borrowing, and use the remaining funds. The technological transformation and supplement of working capital in the purchased coal mines.

According to the report, on the 27th, Yunshen Energy and Kunming Steel Group signed the “According to the Conditions of Coal Mine Equity Acquisition of Yunnan Coal Energy Co., Ltd. and Kunming Iron and Steel Holdings Co., Ltd., which was conditionally effective”, but the asset evaluation and related filing work was not completed at that time. Both parties agree that after the evaluation and relevant filing work are completed, the specific transaction price will be agreed in a supplementary agreement.

Although the agreement has been signed, the success of these coal mine assets and targeted additional investments will require a series of tasks to be completed. After the evaluation and filing, at least it must be approved by the shareholders meeting, the provincial SASAC and the China Securities Regulatory Commission, and the agreement will be effective. The parties have set this time for no more than one year.

Kunming Iron & Steel Holdings committed to inject coal assets located in Shizong County, Yunnan Province, named Wuyi, Waru, Dashe, and Jinshan Coal Mines. Kunming Steel Holding holds 100% equity and registered capital is approximately RMB 260 million, mining and safety The production and other six business essential certificates are all complete. The four coal mines have a total reserve of 30.65 million tons, mainly lean lean coal and coking coal.

If it can be delivered smoothly, Yunmei Energy will also increase the capital of three coal mines and increase the production capacity and safety level of coal mines. At present, except for the completion of the Dashe Coal Mine, the technical renovation projects of Wuyi, Waru, and Jinshan Coal Mines have not commenced and are intended to be used as capital investment projects for this issue. After the completion of the reconstruction and expansion of the four coal mines, the production capacity will be increased from the current approved 410,000 tons to 870,000 tons.