The three listed subsidiaries of Sichuan-based Panzhihua Iron and Steel Group (Pangang) all suspended stock trading on Oct. 22 pending the outcome of a China Securities Regulatory Commission review of Pangang's full-listing plan, to be announced Oct. 24.

The subsidiaries, all listed in Shenzhen, are Panzhihua New Steel and Vanadium Co. Ltd. (PSV), Pangang Group Sichuan Changcheng Special Steel Co. Ltd. (Changcheng Special Steel) and Chongqing Titanium Co. Ltd. (Chongqing Titanium).

Meanwhile, China's Ministry of Environmental Protection also announced on Oct. 21 that the ministry has concluded its environmental impact review of the plan, which is to undergo a public review from Oct. 21 to Oct. 30.

Pangang revealed in November 2007 that it intends to fully list its core assets through an asset-share swap with PSV, as well as share swaps between PSV and the other two listed subsidiaries.

Shareholders who decline to take part in the share swaps have been granted cash options to sell their shares in PSV, Changcheng Special Steel and Chongqing Titanium at the respective per share-prices of RMB 9.59 ($1.40), RMB 6.5 ($0.95) and RMB 14.14 ($2.07). The consideration for the cash options will be paid by Anshan Iron and Steel Group (Angang) in line with a May agreement between Angang and Pangang, aimed at facilitating the share swaps.

An industry insider said that Angang pledged to offer aid for Pangang, as Pangang may become one of Angang's acquisition targets, in light of its abundant vanadium and titanium resources and its sales networks in southwestern China, as previously reported by Interfax.

After the signing of the agreement with Pangang, Angang moved to buy shares in the three listed subsidiaries through the stock market once the share prices fell below the offered prices, in order to save the company from paying more during the future share swaps. Angang secured a 10 percent stake in each of Pangang's three listed subsidiaries as of Sept. 9.

PSV, Changcheng Special Steel and Chongqing Titanium's stock trading all rose slightly to close at RMB 8.32 ($1.22), RMB 5.6 ($0.82) and RMB12.22 ($1.79) per share on Oct. 21, all lower than Angang's offered prices. – Interfax