General Steel Holdings Inc (NYSE:GSI) shares have finally reopened at approximately 10 a.m. ET after a halt of nearly 24 hours. While shareholders had been speculating on whether or not any major news would break, that news has finally come this morning.
Today General Steel Holdings Inc (NYSE:GSI) has announced that they have decided to divest their steel manufacturing business in order to concentrate on their cleantech business, which includes a 84.5% stake in Catalon Chemical, a 32% stake in Tianjin International Trading Co., and 99% stake in Maoming Hengda Iron and Steel Co. General Steel Holdings Inc (NYSE:GSI) will receive a sum of $1 million from Victory Energy Resource Limited for their General Steel Co. Ltd. and their interest in Shaanxi Longmen Iron and Steel Co. They will also reduce their liabilities by $1.6 million as a part of this divesting. Additionally the company is looking to liquidate land assets in Maoming for between $30-$40 million.
“As we concentrate our efforts on where we can have the greatest growth and return on investments, we are fully committed to accelerating our cleantech business,” explained Ms. Yunshan Li, Chief Executive Officer of General Steel. “With the air pollution getting worse throughout China, the government in December launched a new policy to curb emissions from coal in its next five-year plan. The new policy will offer additional subsidies for power plants that can meet ultra-low emission requirements, including minimum oxygen content and concentration level of smoke dust, sulfur dioxide, and NOx emission. We anticipate our De-NOx honeycomb catalysts business will contribute to our growth and profitability in 2016.”
The stock is currently trading higher by 63.87% or $1.75 following the positive news, hitting $4.49 per share at the time of us publishing this article. gsi has risen 265.33% since June 1, 2015 and is uptrending. It has outperformed the S&P500 by 268.34%.
General Steel Holdings, Inc. operates a portfolio of Chinese steel companies. The company has a market cap of $74.52 million. The Firm serves various industries and produces a range of steel products, including reinforced bars , hot-rolled sheets and high-speed wire. It currently has negative earnings. The Firm has four regional divisions in the People’s Republic of China (PRC): Longmen Joint Venture in Shaanxi province, Maoming Hengda in Guangdong province, Baotou Steel Pipe Joint Venture in Inner Mongolia province and General Steel (China) in Tianjin City.