logo
Plus   Neg
Share
Email

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 RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Member of Congress have reportedly been told President Donald Trump's administration has reached an agreement to put Chinese telecom giant ZTE Corp. back in business. Reports from the New York Times and Reuters said the deal brokered by the Commerce Department would require ZTE to pay a substantial... Delta Air Lines will resume non-stop flights between the U.S. and India next year, almost a decade after it exited the Indian market. The airline said Thursday that its decision to resume non-stop flights from the U.S. to India follows agreements between the U.S. and the governments of the United Arab Emirates and Qatar to address the issue of government subsidies provided to state-owned carriers. Mortgage rates continued their upward trend this week and hit a seven-year high, even as housing demand remained robust. According to data released Thursday by mortgage finance provider Freddie Mac, the 30-year fixed-rate mortgage rose to 4.66 percent in the week ending May 24, from 4.61 percent in the prior week and 3.95 percent a year ago. This is also the highest level since May 5, 2011.
Follow RTT