Apr. 24, 2012 (China Knowledge) - Aluminum Corp of China Ltd (Chalco)<601600
>, the country's largest aluminum producer, said yesterday that it plans to acquire a 29.9% stake in imported coking coal supplier Winsway Coking Coal Holdings Ltd<1733> for a total consideration of HK$2.39 billion.
Chalco said in a statement filed with the Hong Kong Stock Exchange
that it would purchase 1.13 billion shares of Winsway Coking Coal from Winsway Resources Holdings Ltd at HK$2.12 apiece, representing a premium of 22.54% over the closing price of HK$1.73 on Apr. 20.
Upon completion the deal, Chalco will become the biggest single shareholder of Winsway Coking Coal.
Chalco said that the takeover is expected to strengthen its downstream logistics operations and allow further integration of its investments in the coal sector, especially trading of coal from Mongolia and the proposed acquisition of SouthGobi Resources Ltd<1878>.
Wang Xingchun, chairman and CEO of Winsway Coking Coal, indirectly fully owns Winsway Resources. Wang and Winsway Resources hold a 48.64% stake in Winsway Coking Coal.