Metal Products News
- Chalco to acquire seven units from parent
Date: 4-Jan-2007 Sources: (Shenzhen Daily)
ALUMINUM Corp. of China Ltd., or Chalco, is aiming to acquire three aluminum smelters and four aluminum-processing firms from its parent after taking Lanzhou Aluminium Co. and Shandong Aluminium Industry Co. private.
The acquisitions would reduce internal competition, enhance Chalco's production capacity and increase its competitiveness, Shanghai-listed Lanzhou Aluminium and Shandong Aluminium said in separate statements Saturday.
The smelter acquisition targets are Shanghai-listed Baotou Aluminum Co., Lanzhou Liancheng Aluminium Co. and Tongchuan Xinguang Aluminum Co., while the four processing firms are Southwest Aluminum (Group) Co., Chinalco-SWA Plates & Strips Co., Chinalco Ruimin Co. and Chinalco Henan Aluminum Fabrication Co.
Baotou Aluminium Co. is 55.06 percent-owned by Baotou Aluminum (Group) Co., a unit of Chalco's parent, Chinalco, according to the Shanghai Stock Exchange Web site.
The statements said the acquisitions would take place at appropriate times, but gave no details.
They also said Chalco is planning to expand its alumina-production facilities in bauxite-rich areas, but didn't elaborate.
Chalco, the world's second-largest alumina producer by output behind Alcoa Inc., is in the process of buying out 28 percent-owned Lanzhou Aluminum and 71.4 percent-owned Shandong Aluminum.
Under the deal, Chalco will swap 8.2 billion yuan (US$1.05 billion) worth of its stock for the shares it doesn't own in the two Shanghai-listed units, before floating its own shares in Shanghai through a backdoor listing.
Shandong Aluminum and Lanzhou Aluminum will be delisted after the share swap. The two firms' A shares will be suspended from trading Jan. 10.
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