Amreli Steel drops joint venture with Qingdao Huijitong Power

In a bourse filing today, Amreli Steel Limited (ASTL) informed all the relevant stakeholders that it has dropped the joint venture with Qingdao Huijintong Power Equipment Company Limited (HJT) to enter into Power Transmission business in Pakistan.

ASTL has announced expansion in to electrical transmission business on 29^th November, 2017 last year in collaboration with HJT. However, “with certain obstructions resulting in cessation of the said joint venture”, ASTL and HJT have “mutually agree that they will not continue with the proposed joint venture agreement”.

Board of Directors at ASTL on 17^th November, 2017 had approved an investment in Electrical Transmission Business through a joint venture with HJT.

HJT is a listed company registered in Shanghai principally engaged in research, design, manufacture and distribution of transmission line towers within and outside China.

Both the companies had approved the signing of joint venture agreement and incorporation of Huijintong – Amreli (Private) limited. ASTL had agreed to take 65 percent equity stake in joint venture Company translating in to an investment amount worth RMB 65,000,000 (PKR 1,040 million approx.)

Amreli Steel (ASTL) stock price at 12:40 was Rs. 92.29 per share.