Stocks News
- Regulator to consider Chalco listing plan
Date: 16-Apr-2007 Sources: (Shenzhen Daily)
MAINLAND securities regulators will meet Tuesday to consider a billion-dollar plan by Aluminum Corp. of China (Chalco) to list in Shanghai, the China Securities Regulatory Commission said Saturday.
Chalco, the world's second-biggest producer of alumina, aims to list by buying out two Shanghai-listed arms, smelter Lanzhou Aluminum Co. and alumina maker Shandong Aluminum Industry Co.
The plan is the latest in a series of Shanghai listings by the mainland's biggest companies. It would make Chalco, 8 percent owned by the world's largest alumina producer, Alcoa Inc., one of the top domestically listed mainland metal stocks.
Chalco said it would issue 1.24 billion new A shares, or 9.6 percent of its expanded share capital in Shanghai, at a price of 6.60 yuan each, valuing the deal at 8.16 billion yuan (US$1.06 billion).
The shares would be exchanged for those in the units at a rate of one freely floating Lanzhou share for 1.80 Chalco shares, and one Shandong share for 3.15 Chalco shares. Lanzhou last closed in Shanghai at 14.61 yuan and Shandong at 25.41 yuan.
The A share issue price is at a discount of 26 percent to the HK$9.06 last close of Chalco's Hong Kong-listed H shares, which are up 26 percent so far this year.
Chalco did not say when it expected to list in Shanghai, but listings generally take place within several weeks of regulatory approval. The deal still needs the approval of various government agencies, Chalco said.
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