Metal Products News
- Chalco plans restructuring talks with Baotou
Date: 14-Jun-2007 Sources: (Shenzhen Daily)
ALUMINUM Corp. of China Ltd. (Chalco) said yesterday it planned to hold restructuring talks with Shanghai-listed Baotou Aluminum, amid speculation it will take the company private.
Chalco, the world's third-largest producer of alumina, also said it planned to issue up to 2 billion yuan in corporate bonds, but gave no other details.
Trading in Chalco's shares was suspended in Shanghai yesterday amid speculation that its parent's assets in Baotou Aluminum would be transferred to the listed firm. Baotou Aluminum was also suspended from trading.
Chalco said it proposed to hold talks with Baotou regarding the restructuring of Baotou's primary aluminum business. It said the talks may involve the company, its controlling shareholder (Chinalco), and Baotou. Chinalco currently holds 55.06 percent of Baotou.
It gave no further details.
Chalco's Hong Kong-listed shares have risen 46 percent so far this year, outpacing a 6 percent gain in the index of mainland companies listed in Hong Kong.
Its Shanghai-listed shares have surged more than 300 percent since their mainland debut in April. Baotou's stock has also surged more than 300 percent so far this year.
Chalco has been expanding at a breakneck pace as the government consolidates a fragmented industry. It said in May it planned to issue up to 5 billion yuan (US$651.89 million) of corporate bonds to buy raw materials.
Chalco clarified in a separate statement yesterday that it was not involved in a US$792 million deal by its parent, Aluminum Corp. of China Ltd. (Chinalco), to buy Peru Copper Inc.
Chalco said it made the statement in response to media reports regarding the takeover.
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