You are here

Delong still in process of bidding for stake in steel bar maker

DELONG Holdings is engaging relevant parties as part of a previously announced plan to bid for a stake in a China steel business, the company said on Wednesday in reply to a trading query by the Singapore Exchange (SGX).

Delong, a steel manufacturer, said that it is otherwise unaware of any reason for an unusual increase in trading activity of its stock on Tuesday.

Delong had entered into a binding memorandum of understanding on May 10 to bid for a 51 per cent stake in Anhui Shoukuang Dachang Metal Materials Ltd Co, a maker of steel bars and wire rods.

As part of the agreement, Delong paid the vendor, a state-owned entity, 10 million yuan (S$2 million) as a guarantee that Delong will take part in a bidding exercise for the target stake.

Tuesday's trading query was Delong's second in five month, the SGX noted.

The stock rose 8.4 per cent, or 14 Singapore cents, to close at S$1.80 on Tuesday after 374,700 shares had changed hands.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to