Chalco says to buy 29.9 percent of Winsway Coking Coal for $308 million
April 24, 2012
(Reuters) – Aluminum Corp of China Ltd (2600.HK)(601600.SS) said it has agreed to buy 29.9 percent of imported coking coal supplier Winsway Coking Coal Holdings Ltd (1733.HK) for HK$2.39 billion ($307.92 million) to strengthen its downstream logistics operations.
In a filing to the Hong Kong stock exchange late on Monday, the China’s top aluminum maker said it would buy 1.13 billion shares of Winsway Coking Coal from parent Winsway Resources Holdings Ltd at HK$2.12 per share.
Chalco said it would become the single largest shareholder of Winsway on completion of the deal, which would allow further integration of its investments in the coal sector, in particular trading of coal from Mongolia and the proposed acquisition of SouthGobi Resources Ltd (SGQ.TO)(1878.HK).
Winsway shares ended 8.7 percent higher at HK$1.88 on Monday, while Chalco fell 3.9 percent in Hong Kong to HK$3.72.
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Earlier this month, Chalco stepped up diversification, agreeing to pay $926 million for a controlling stake in Mongolian coal miner SouthGobi Resources in a deal with mining billionaire Robert Friedland’s Ivanhoe Resources (IVN.TO).
($1 = 7.7619 Hong Kong dollars)
(Reporting by Donny Kwok; Editing by Chris Lewis)