BIZCHINA / News
Chalco aims to buy out Baotou to consolidate
(Shanghai Daily)
Updated: 2007-07-04 13:00
Aluminum Corp of China will
BIZCHINA / News
Listed companies must disclose securities investments
By Shangguan Zhoudong (Chinadaily.com.cn)
Updated: 2007-07-03 08:25
Listed companies must disclose their information on stocks they hold in
other listed companies and stakes they have in non-listed financial
companies and companies planning to go public, according to circulars
issued by the Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange
yesterday.
The two exchanges also announced yesterday a timetable for the disclosure
of listed companies' interim reports of 2007.
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As for companies that went public before June 30 of this year, their
interim reports should be announced as of August 31 this year, according
to the circulars.
If listed companies are unable to complete the disclosure before August
31, they should submit written statements to their exchanges to explain
the reason for delay and the deadline.
The two stock exchanges will stop trading stocks for those listed
companies which fail to announce their interim results by September 1;
they will resume trading once they make their reports.
If listed companies' first-half-year results are given away before the
release of their interim reports, or the trading of their stocks and
other derivatives fluctuate abnormally due to rumors on performance, they
must disclose the relevant accounting information.
SSE will allow a maximum of 50 listed companies to announce their interim
reports per day, and the Shenzhen Stock Exchange will arrange 30
companies at most to announce their half-year results daily.
The Shenzhen exchange ordered that senior executives of listed companies
be not allowed to trade their companies' stocks during the information
disclosure period. The exchange also encourage companies that are listed
on its small- and medium-sized enterprises board and plan to disclose
their interim results in August to make the disclosure before the end of
July.
(For more biz stories, please visit Industry Updates)
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buy out sister firm Baotou Aluminum Co in a
share-swap deal worth 15.3 billion yuan (US$2 billion), as the domestic
industry leader tries to consolidate to rival global giants.
Chalco, as Aluminum Corp is known, said yesterday it planned to issue
1.48 A shares to Baotou shareholders in exchange for one Baotou share.
Baotou will then be delisted.
In Shanghai, Baotou shares surged to their 10-percent daily limit
yesterday to 29.41 yuan on the news and Chalco rose 3.73 percent to 23.94
yuan. Shares of both firms had been suspended from trading since June 12
pending yesterday's announcement.
Based on Chalco's closing price, the offer valued Baotou, which has 431
million shares outstanding, at 15.3 billion yuan. Baotou and Chalco are
both controlled by Chinalco.
The plan needs shareholders' and regulators' approval. Baotou
shareholders can choose to get 21.67 yuan for each of their shares as an
alternative offer.
Hong Kong-listed Chalco started trading in Shanghai in late April as part
of government efforts to improve quality of the mainland stock market.
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Chalco to issue bonds
Bid to curb overheating in aluminum industry
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"When it returned to the mainland market, Chalco has committed to acquire
more aluminum assets from its parent," Orient Securities analyst Yang
Baofeng said. "The Baotou deal is part of the commitment and we expect
more to come."
Based in northern Inner Mongolia Autonomous Region, Baotou has annual
aluminum production capacity of around 300,000 tons, or about a tenth of
Chalco's.
Chalco plans to increase aluminum capacity to five million tons by 2010
from 3.5 million tons this year.
Chalco had absorbed Lanzhou Aluminum Co and Shandong Aluminum Industry Co
in a similar way, and has acquired others, too. It is seeking to grow
bigger at a time of consolidation in the global aluminum sector,
highlighted by US-based Alcoa Inc's hostile bid for Canada's Alcan Inc.
(For more biz stories, please visit Industry Updates)
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