Marketmen cool to Nanjing Iron restructuring

SHANGHAI: The company calls it rationalization, but the intricate restructuring plan announced by Shanghai-listed Nanjing Iron & Steel has failed to impress marketmen.

Nanjing Iron shares fell by more than 5 percent to close at 4.42 yuan on Wednesday after trading in the scrip began on Tuesday following a suspension from April 22.

In a note to the Shanghai Stock Exchange, Nanjing Iron said it plans to sell more than 2 billion shares at 4.23 yuan apiece to Nanjing Nangang United Co (NNU) in exchange for 10 assets valued at 8.6 billion yuan. The assets include a wire plant, a shipping company, and an iron ore mine.