Aluminum Corp. of China Ltd. (ACH: Quote), 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: Quote,IVN.TO: Quote) 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.
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by RTT Staff Writer
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