Aluminium maker offers share swap
Updated: 2006-12-09 09:38
Aluminium Corp of China Ltd (Chalco), the country's biggest aluminium maker, has offered as much as 8.17 billion yuan (US$1.03 billion) worth of its stocks to swap with the remaining shares it does not own in two Shanghai-listed companies under its control, it announced on Friday.
The company, also the world's second-largest aluminium manufacturer, offered to buy shares in Lanzhou Aluminium Co and Shandong Aluminium Industry Co, 25 percent higher than their last traded share prices.
"The move is aimed at helping the two listed companies implement long-awaited securities reforms, and is also part of Chalco's plan to trade A shares on the Shanghai Stock Exchange after it listed in New York and Hong Kong in 2001," Xiao Yaqing, chairman and CEO of Chalco, told a press conference.
After the takeover, shares in both Lanzhou Aluminium and Shandong Aluminium will no longer be traded, while Chalco's A shares will start to trade on the Shanghai Stock Exchange.
Chalco will have 1.15 billion A shares, representing 8.9 percent of its total stock, which will be traded on the Shanghai market after the takeovers.
"Trading A shares may help Chalco raise funds to strengthen its leading position in the aluminium market," Xiao said. The company plans to build nine plants in China to increase output of the metal used in cars, aircraft and drinks cans.
Chalco is the latest overseas listed company to seek a listing on the Chinese
mainland after Shanghai's benchmark index surged heavily this year.
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