Sims Metal Management update on Chiho-Triande Group acquisition

CHICAGO & SYDNEY (Scrap Monster): Further to its announcement on 17 January 2012 of an acquisition of 16% of the existing shares of Chiho-Tiande Group Limited (CTG) (HKG:0976) together with an option to acquire a further 2% of existing shares of CTG, Sims Metal Management Limited (SimsMM) has announced that following the unanimous approval of CTG’s independent shareholders on 27 February 2012, SimsMM has completed the subscription for a three-year HK$316 million convertible bond, which has a 4% p.a. coupon and is convertible into 53 million CTG shares at a conversion price of HK$6.00 per share, and was issued three-year warrants for 13 million new CTG shares at an exercise price of HK$6.00 per warrant.

In order to support the continued growth plans of CTG, founder Chairman Mr Ankong Fang and Delco Participation B.V. have also subscribed for a convertible bond on equivalent terms, such that CTG received in aggregate an amount of HK$816 million from the issue of all convertible bonds.