The Wall Street Journal
China's Chalco Bids for Control of Coal Miner SouthGobi
Edited by : AL CIRCLE
1 min read
Aluminum Corp. of China Ltd., known as Chalco, said Monday it has proposed to acquire up to 60% of coal miner SouthGobi Resources Ltd. in a deal valued at up to 7.2 billion Hong Kong dollars (US$927 million).
Chalco, the world's second-largest alumina producer after Alcoa Inc., said in a statement to the Hong Kong stock exchange that it would like to acquire a controlling stake in SouthGobi as part of its strategy to diversify into the coal business.
The cash offer of approximately HK$65.97 a share represents about a 29% premium over the HK$51.20 closing price of SouthGobi's shares on Friday, the company said.
Chalco also said it had entered into a cooperation agreement on Tuesday with SouthGobi that provides for an arrangement for the company to purchase up to 100% of SouthGobi's coal production at the then-prevailing market price for up to 24 months.
Chalco, the world's second-largest alumina producer after Alcoa Inc., said in a statement to the Hong Kong stock exchange that it would like to acquire a controlling stake in SouthGobi as part of its strategy to diversify into the coal business.
The cash offer of approximately HK$65.97 a share represents about a 29% premium over the HK$51.20 closing price of SouthGobi's shares on Friday, the company said.
Chalco also said it had entered into a cooperation agreement on Tuesday with SouthGobi that provides for an arrangement for the company to purchase up to 100% of SouthGobi's coal production at the then-prevailing market price for up to 24 months.
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