logo
Share SHARE
FONT-SIZE Plus   Neg

Chalco Agrees To Buy SouthGobi Stake - Quick Facts

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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
LEGO Group, TT Games and Warner Bros. Interactive Entertainment have announced their 2015 slate of video games, including LEGO Jurassic World, LEGO Marvel's Avengers, and as well as new hand-held and mobile titles. Social-networking giant Facebook, Inc. is said to be testing their new 'Place Tips' feature for iOS users that will rival a similar service being provided by Yelp or Foursquare. The feature will provide the user relevant content about their location as long as they are there through pop ups on their news feed page of Facebook. Disney CEO Bob Iger has confirmed that all three films in the upcoming Star Wars trilogy will be out by the end of the decade. With Episode VII set for release later this year, "Star Wars: Episode VIII" will hit theaters in 2017 and that "Star Wars: Episode IX" will arrive in 2019, according to Get...
comments powered by Disqus
Follow RTT