Fortescue Metals confirms Hunan capital raising deal

Australia's Fortescue Metals Ltd. will reportedly sell A$558 million ($361.4 million)in new shares to China's Hunan Valin Iron & Steel, according to a Dow Jones Newswire report. Valin will purchase 225 million new shares issued by the miner at A$2.48 a share. In a separate development, the Chinese company will purchase 275 million existing shares from a current Fortescue shareholder, Fortescue was cited as saying in the report. When all the shares purchases are completed, Valin will hold 16.5% of Fortescue's issue shares.