Chalco to buy 19% stake in Yunnan Aluminium to become largest shareholder

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

Aluminum Corporation of China (Chalco) said that it plans to acquire a 19% stake in Yunnan Aluminium held by Yunnan Metallurgical in cash through a non-public agreement.

The price for the transactions is set at 10.11 yuan per share, meaning the deal will be worth 6.6 billion yuan. Yunnan Aluminium’s shares closed at 9.58 yuan per share on Friday.

As Chalco, Yunnan Aluminium and Yunnan Metallurgical are all controlled by Aluminum Corporation of China Group or Chinalco, the transaction is a related transaction and does not constitute a material asset restructuring.

On completion, Chalco will hold about 29.1% of Yunnan Aluminium shares, becoming its largest shareholder and include the latter’s shares into the scope of the company’s consolidated statements.

Chalco said the transaction will help further ease the competitions with Yunan Aluminium and effectively reduce the daily related transactions.