BEIJING, Oct. 26, 2015 /PRNewswire/ -- General Steel
Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a
leading non-state-owned steel producer in China, today announced that it has completed
the previously-announced acquisition of an 84.5% equity interest in
Catalon Chemical Corp. ("Catalon"), a Delaware corporation headquartered in
Virginia, that develops and
manufactures De-NOx honeycomb catalysts and industrial
ceramics.
Catalon's honeycomb technology is an integral part of the
selective catalytic reduction ("SCR") process widely used in steel
mills, thermal power stations, waste incinerators, stationary
diesel motors, industrial plants, and heavy-duty trucks. Catalon,
along with its honeycomb technology, was valued at approximately
$20 million by an independent third
party. The acquisition is expected to enable General Steel to
pursue the large and rapidly growing cleantech business in
China to facilitate its business
transformation.
Pursuant to the terms of the acquisition, General Steel issued
13 million shares ("Payment Shares") of General Steel Common Stock
in exchange for a portion of their equity interests in Catalon,
equating to 84.5% of all outstanding ownership interests in
Catalon. The Payment Shares are being held in escrow, subject to
minimum performance targets of Catalon. If those performance
targets are not met in their entirety, the Payment Shares will be
reduced proportionately to the percentage of the performance
targets actually achieved. The Payment Shares are also subject to a
lock-up period placing restrictions on the Selling Shareholders'
ability to directly or indirectly transfer or otherwise dispose of
the Payment Shares for a defined period. As a result of the
issuance of 13 million shares, the Company now has 82,984,282
Common Stock issued and outstanding as of October 23, 2015.
Ms. Yunshan Li, Chief Executive
Officer of General Steel commented, "We believe that acquiring
Catalon is a strategic keystone for General Steel's business
transformation. We are excited to welcome aboard Catalon's talented
senior management team to General Steel and expect a seamless
integration. As we merge Catalon's proven technology, comprehensive
suite of products and services, and talented team with General
Steel's vast resources, strong market presence and broad
distribution platform, we are even more excited about the myriad of
new business opportunities and synergies brought forth through this
acquisition.
With the air pollution getting worse throughout China, the market sorely needs to effectively
reduce industrial NOx emissions. We believe that the annual
honeycomb catalyst consumption in China is approximately 350,000 cubic meters,
and we anticipate capturing a meaningful share of this large and
rapidly-growing business, as Catalon has previously won binding
sales agreements with two distributors with each purchasing a
monthly minimum of 600 cubic meters for three years."
About General Steel
General Steel Holdings, Inc. is a leading non-state-owned steel
maker headquartered in Beijing,
China. With seven million metric tons of crude steel
production capacity under management, the Company produces a
variety of steel products including rebar and high-speed wire.
In addition to its steel business, the Company also designs,
manufactures, and integrates radio frequency identification
("RFID") systems. Through its majority equity interest in
Catalon, the Company also develops and manufactures De-NOx
honeycomb catalysts and industrial ceramics.
To be added to the General Steel email list to receive Company
news, or to request a hard copy of the Company's Annual Report on
Form 10-K, please send your request to
investor.relations@gshi-steel.com.
Forward-Looking Statements
This press release may contain certain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on management's
current expectations or beliefs about future events and financial,
political and social trends and assumptions it has made based on
information currently available to it. The Company cannot assure
that any expectations, forecasts or assumptions made by management
in preparing these forward-looking statements will prove accurate,
or that any projections will be realized. Actual results could
differ materially from those projected in the forward-looking
statements as a result of inaccurate assumptions or a number of
risks and uncertainties. These risks and uncertainties are set
forth in the Company's filings under the Securities Act of 1933 and
the Securities Exchange Act of 1934 under "Risk Factors" and
elsewhere, including those disclosed in the Company's most recent
Annual Report on Form 10-K, filed with the United States Securities
and Exchange Commission. Forward-looking statements contained
herein speak only as of the date of this release. The Company does
not undertake any obligation to update or revise publicly any
forward-looking statements, whether to reflect new information,
future events or otherwise.
Contact Us
General Steel Holdings, Inc.
Joyce Sung
Tel: +1-347-534-1435
Email: joyce.sung@gshi-steel.com
Asia Bridge Capital Limited
Carene Toh
Tel: +1-888-957-3362
Email: generalsteel@asiabridgegroup.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/general-steel-completes-acquisition-of-controlling-interest-in-catalon-chemical-corp-300165770.html
SOURCE General Steel Holdings, Inc.