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Shares of Aluminum Corporation of China (Chalco) rose on Monday after its controlling shareholder, Aluminum Corporation of China (Chinalco), announced plans to increase its stake in the state-owned aluminium producer by up to USD 300 million (CNY 2 billion), reflecting confidence in the company's future development and long-term investment value.
{alcircleadd}By 04:58 GMT, Chalco's Shanghai-listed shares had gained 6.4 per cent to CNY 8.98, while its Hong Kong-listed shares were up 4.2 per cent at HKD 7.93.
According to a company filing, Chinalco and parties acting in concert intend to purchase between CNY 1 billion (USD 147.6 million) and CNY 2 billion (USD 295 million) worth of Chalco's A- and H-shares over the next 12 months through the Shanghai and Hong Kong stock exchanges.
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The company said the planned purchases will not exceed 2 per cent of Chalco's total share capital.
At present, Chinalco directly holds around 30.5 per cent of Chalco's shares and controls approximately 33.6 per cent of the company's total share capital through its subsidiaries.
Chalco said the proposed stake increase reflects Chinalco's confidence in the company's long-term prospects and its belief in the value of the business as a long-term investment.
The company added that the share purchases will be financed using Chinalco's internal resources or self-raised funds.
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