CHALCO to Yunnan Aluminum Foil – completion of capital agreement

Aluminum Corporation of China Limited (CHALCO) has made an announcement of completing contributions to Yunnan Aluminum Foil. Through its three subsidiaries, viz., Yunnan Aluminum, Chinalco High-end Manufacturing, and Kunming Copper, CHALCO’s investment totalled to a sum of RMB 906.45 million (USD 127.9 million), targeting the development of a stronger aluminium industrial chain. 

Explore- Most accurate data to drive business decisions with 50+ reports across the value chain

Pursuant to the signed agreement, the contributions from the three subsidiaries of CHALCO consisted of RMB 818 million (USD 115.4 million) in cash and RMB 88.45 million (USD 12.48 million) in assets, which covered buildings, land-use rights, and related liabilities.

Yunnan Aluminium were to commit RMB 500 million (USD 70.5 million) in cash, earning a 16.70 per cent stake in Yunnan Aluminum Foil post the restructuring. Chinalco High-end Manufacturing has invested RMB 229 million (USD 32.5 million) in order to secure 68.31 per cent, while Kunming Copper provided RMB 89 million (USD 12.5 million) in cash as well as RMB 88.45 million (USD 12.4 million) in assets for an ownership of 5.93 per cent. Northwest Aluminum Plant has maintained its 9.06 per cent share.

The funding has been provided with the aim of supporting the development of a new energy high-precision strip, sheet, and foil initiative. An asset-based approach was adopted for the valuation of Yunnan Aluminum Foil. The equity allocations were based on appraised values and contributions. It is a strategic step, poised to enhance the company's capabilities as well as bolster its competitiveness in the market.

Presently, following the completion, the registered capital of Yunnan Aluminum Foil is expected to rise from RMB 800 million (USD 112.9 million) to RMB 1.14 billion (USD 141 million).

Must read: Key industry individuals share their thoughts on the trending topics