Aluminum Corp of China Ltd (Chalco), the nation's biggest maker
of the metal, said it might restructure Baotou Aluminum Co,
prompting speculation it will acquire the company's assets.
The company is planning to hold restructuring talks with Baotou
about the primary aluminum business, the company said in a
statement yesterday.
Chalco did not reveal the details of the announcement. A
spokesperson from Chalco declined further comment.
Chalco's shares were suspended in Hong Kong and Shanghai on
Tuesday. The company's stock rose as much 4.8 percent to HK$11
after it resumed trading yesterday.
Chalco's Shanghai-traded stock will remain suspended until
progress in the Baotou talks is made, the company said in a
statement yesterday.
Negotiations may involve Chalco's parent, Aluminum Corp of China
(Chinalco), the statement said. Chinalco holds 55.1 percent of
Baotou's shares.
Chalco still might buy out Baotou, said an analyst who declined
to be named. Earlier this year, Chalco bought out and delisted two
of Baotou's other units, Shandong Aluminum Industry Co and Lanzhou
Aluminum Co.
Chalco has been leading mergers and acquisitions in the domestic
and foreign markets to expand its output capacity. The company said
earlier it would buy processing plants from its parent to meet
domestic demand, which is forecast to grow 20 percent annually.
In 2006, Chinalco posted 22.5 billion yuan in net profit, an
increase of 18.1 billion yuan from three years before.
Its sales revenue was 105.5 billion yuan in 2006, an increase of
74.5 billion yuan compared with 2003.
Chalco is also exploring overseas markets such as Brazil,
Australia, Vietnam and Guinea. The company signed an agreement in
March with Australia's Queensland government to obtain mining
rights to develop the Aurukun bauxite deposits.
Chalco will also complete a feasibility study by August to
develop Vietnam's Dak Nong bauxite project and form a joint venture
with Vietnam National Coal-Mineral Industries Group.
Earlier media reports said Chalco agreed to buy Peru Copper Inc
for $792 million. The company denied the reports yesterday.
Chalco started selling 2 billion yuan of bonds to domestic
investors yesterday to help to pay for expansion, the company said
in a statement.
(China Daily June 14, 2007)