Aluminium maker offers share swap
Updated: 2006-12-09 09:38
Large overseas listed companies such as PetroChina and China Life Insurance all plan to issue shares on the home market after Shanghai witnessed large initial public offerings such as the Industrial and Commercial Bank of China and Bank of China.
Chalco is offering 3.15 shares for every Shandong Aluminum share, last traded at 16.65 yuan (US$2.1), for a total of 4.17 billion yuan (US$528 million). The cash offer is the same as the last traded price.
The firm is offering 1.8 Chalco shares for every share in Lanzhou Aluminum, with the total deal worth 4 billion yuan (US$506 million).
A concurrent cash offer valued at 6.91 billion yuan (US$875 million) does not contain a premium.
Shareholders in the two companies are likely to vote on the offer at meetings to take place early next month. Trading in Lanzhou Aluminum and Shandong Aluminum shares has been suspended since November 28.
"The current share swap plan is the best way we can find for Chalco to implement the share reform and balance the interests of all shareholders," said Chalco Vice-President Chen Jihua.
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