Maanshan Iron & Steel (SHA:600808, HKG:0323), through subsidiary Magang (Group) Holding, agreed to acquire 1.04% of Baowu Group Environmental Resources Technology for a consideration of 114 million yuan, according to a Hong Kong bourse filing on Wednesday.
The Chinese iron company's Hong Kong shares fell 3%, while Shanghai shares declined 2% at the close.
Magang will contribute its 3.15% equity in Baowu Water Technology as consideration for Baowu Environment's stake. After the transaction, Magang will no longer hold any stake in Baowu Water.
Meanwhile, Baowu Environment's registered capital will rise to 1.04 billion yuan from 711.6 million yuan. Magang is one of Baowu Environment's 13 new stakeholders.