logo
Share SHARE
FONT-SIZE Plus   Neg

Chalco Agrees To Buy SouthGobi Stake - Quick Facts

Aluminum Corp. of China Ltd. (ACH), known as Chalco, announced that it has proposed to acquire up to 60% of coal miner SouthGobi Resources Ltd. for about C$925.28 million or about HK$7.2 billion.

Chalco said in a statement to the Hong Kong stock exchange that it would like to acquire a controlling stake in SouthGobi as it aligns with the Company's strategy to expand its business scope to other resources.

Chalco, offered to buy the stake through a takeover offer for as much as 60 percent of SouthGobi at C$8.48 a share, 28 percent more than its close in Toronto on March 30. The cash offer of about HK$65.97 per share represents about a 29% premium over the HK$51.20 closing price of SouthGobi's shares on March 30 , the company said in a statement to the Hong Kong stock exchange.

In connection with the Offer, Ivanhoe Mines Ltd. (IVN,IVN.TO) has entered into a lock-up agreement with CHALCO and has agreed to tender all of its SouthGobi shares, on a pro-rata basis, to CHALCO. Ivanhoe Mines currently owns 104.81 million shares of SouthGobi, representing approximately 57.6% of SouthGobi's issued and outstanding shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
10 Worst Places To Raise A Family Whether you are a young couple building a nest or seasoned parents looking for a change of scenery, there are number of places around the country that should be avoided, according to personal finance website WalletHub. They looked at mainly five categories for... A passenger has filed a lawsuit against Canadian budget airline Sunwing Airlines for serving him cheap sparkling wine instead of champagne on board a flight, according to media reports. The Canadian passenger, Daniel MacDuff, reportedly boarded his Sunwing flight to Cuba in February, on a flight package that advertised a complimentary on-board champagne toast. Senate Health Committee Chairman Lamar Alexander, R-Tenn., and ranking member Patty Murray, D-Wash., announced Thursday that twenty-two other Senators are cosponsoring their bipartisan plan to provide short-term stability to Obamacare. The bipartisan bill includes a two-year extension of the cost-sharing...
comments powered by Disqus
Follow RTT