Business Activities News
- Guanlu to sell stake to Minmetals
Date: 22-Mar-2007 Sources: (Shenzhen Daily)
SHENZHEN-LISTED Shanxi Guanlu Co. said yesterday its parent plans to sell a controlling stake in the listed firm to the country's top State-owned metals trader, China Minmetals Corp.
The company also dismissed market talk that the company would be acquired by Aluminum Corp. of China, or Chinalco, China's largest aluminum producer and the parent of Aluminum Corp. of China Ltd., or Chalco, the world's second-largest alumina producer.
Guanlu's parent, Shanxi Guanlu Group, is scheduled to sign the agreement with Minmetals in three months, after which it will no longer be Guanlu's largest shareholder, it said in a statement.
The company did not elaborate on the size of stake to be sold. By the end of September, 2006, Guanlu's parent held 140 million shares, or 38.57 percent, in the listed company.
Guanlu surged its 10 percent daily limit to 10.56 yuan (US$1.37) a share yesterday following the announcement.
Guanlu also said its government supervisors and the parent company had not yet contacted or reached any cooperation intention with Chinalco.
Chinalco and Chalco have been leading the consolidation of China's aluminum smelting industry.
Guanlu has a 49 percent stake in a 220,000 ton-per-year aluminum smelter in northern Shanxi Province which is 51 percent held by Chalco.
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