Yunnan Aluminium will acquire and consolidate stakes across three related companies after Aluminum Corporation of China (Chalco) signed a capital-contribution agreement to restructure ownership within its downstream aluminium operations, according to a filing with the Hong Kong Stock Exchange.
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Under the signed agreement, three Chalco subsidiaries — Chinalco High-end Manufacturing, Yunnan Aluminium, and Kunming Copper — will inject a combined RMB 906.45 million (USD 127.9 million) into Yunnan Aluminum Foil. The contribution includes RMB 818 million (USD 115.4 million) in cash and RMB 88.45 million (USD 12.48 million) in assets, covering land-use rights, buildings and associated liabilities.
Yunnan Aluminium will contribute RMB 500 million (USD 70.5 million) in cash, giving it a 16.70 per cent stake in Yunnan Aluminum Foil after the restructuring. Chinalco High-end Manufacturing will inject RMB 229 million to hold 68.31 per cent, while Kunming Copper will invest RMB 89 million (USD 12.5 million) plus RMB 88.45 million (USD 12.4 million) in assets to secure a 5.93 per cent share. Northwest Aluminum Plant will retain 9.06 per cent.
Also read: The World of Aluminium Extrusions – Industry Forecast to 2032.
Following completion, Yunnan Aluminum Foil’s registered capital will rise from RMB 800 million (USD 112.9 million) to RMB 1.14 billion (USD 141 million).
Chalco said the deal is designed to strengthen its aluminium industrial chain, increase downstream processing capability and boost the alloying rate, in line with China’s dual-carbon objectives. The new capital will fund the development of a high-precision foil, sheet and strip project, which is expected to enhance efficiency and deliver higher returns once operational.
As the entities involved are connected parties, the transaction is deemed a connected transaction under HKEX rules. With the relevant percentage ratios above 0.1 per cent but below 5 per cent, it requires public disclosure but does not need independent shareholder approval. Directors with overlapping roles abstained during the board vote.
The company stated that the restructuring will optimise group assets, improve utilisation of electrolytic aluminium resources and strengthen its position in aluminium foil and strip manufacturing.
Also read: End-user Revolution: Aluminium’s Impact on Modern Living
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