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Xingfa Aluminium resumes trading after privatisation announcement
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<p>China Xingfa Aluminium, which on September 15 halted trading ahead of a takeover announcement, announced this morning shares would resume trading after it filed an announcement last night proposing the company’s privatisation.<br /><br />The director of the firm and that of it’s largest shareholder – a subsidiary of state-run investment firm Guangdong Guangxin Holdings – plan to offer a cancellation price of HK$3.70 per share, a premium of 24.58 per cent over the company’s most recent closing price on September 14, on which day shares jumped 7.61 per cent.<br /><br />{googleAdsense}<br /><br />Shares in the company jumped as much as 21.2 per cent in early trade in Hong Kong.<br /><br />The privatisation is pending approval from Guangdong’s state-owned assets regulator and other authorities, though given the pedigree of Xingfa’s largest shareholder a green light seems likely.<br /><br />If successful, the de-listing would facilitate the merger of Xingfa with another state firm, as consolidation among China’s often loss-making state companies in commodities and heavy industry, pushed by Beijing with an eye toward producing national champions, has been a theme in recent years.</p>
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