Apr.22, 2011 (China Knowledge) - Wintime Energy Co Ltd<600157
>, which is principally engaged in operation of oil products and coal mining, announced plans to raise not more than RMB 5.4 billion via a private placement to acquire partial or entire equities of four collieries.
According to the plan, the Shanghai-listed firm will issue up to 231 million shares to ten selected investors at a price of RMB 23.41 apiece. The issuer's parent company Wintime Investment Holding Co will spend more than RMB 1 billion to subscribe the to-be-issued shares.
The issuer said it will use the proceeds to acquire a 100% stake in two collieries and a 49% stake in one colliery all in Shanxi
Province, as well as a 70% stake in one colliery in Shaanxi
Upon the completion of the acquisitions, Wintime Energy will have a total of 200 million metric tons in coke reserves, bringing the firm's coke output capacity to 4.95 million metric tons per year.
Wintime Energy, formerly known as Taian Lurun Co Ltd, aims to have an annual coke output capacity of 5 million metric tons in the next two or three years and around 10 million metric tons within five years.