Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

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.

Register
To receive FREE breaking news email alerts for Aluminum Corp. of China Ltd. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
After moving modestly higher in morning trading, stocks showed a substantial move to the downside over the course of the trading day on Wednesday. The major averages pulled back well off their highs for the session, sliding firmly into negative territory. Ebola "czar" Ron Kain is scheduled to meet with President Barack Obama on Wednesday as he begins his efforts to coordinate the government's response to the deadly disease. Klain, who previously served as chief of staff to Vice President Joe Biden and then-Vice President Al Gore, was named as Ebola Response Coordinator last Friday. Potentially complicating the outlook for control of the Senate, the results of a SurveyUSA poll conducted for WXIA-TV in Atlanta suggest that the Georgia Senate race between Republican David Perdue and Democrat Michelle Nunn could be headed for a runoff.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.