Aluminum Corporation of China (Chinalco, SH.601600) plans to issue no more than 1 billion additional A-shares, worth an estimated 10 billion yuan (US$1.46 billion).
Chinalco's internal memo states that the additional shares will be directed to qualified individual investors and financial institutions. And the issue price will not be lower than 90 percent of the average A-share price 20 days prior to the date of price setting. In addition, this stake expansion won't shift the company's management.
The collected capital will fund the company's new 800 kilo ton-scale alumina project in Chongqing, and two other projects in Xingxian County in north China's Shanxi Province, and Zhongzhou in central China's Henan Province.
Chinalco anticipates a finance improvement after the fund rising is complete. The company's interest expenses reached 1.226 billion (US$179.50 million) and 1.865 billion yuan (US$273.06 million), in 2007 and 2008. The collected fund will try and help alleviate the company's heavy financial burden.
Chinalco's Chongqing and Xingxian projects will be put into operation in 2010 and 2011, and will increase the company's alumina output by 800 thousand tons, while in Zhongzhou will boost Chinalco's alumina by 700 thousand tons, all on a yearly basis.
For more information, please consult the original coverage in Chinese at:
http://paper.cs.com.cn/html/2009-07/01/content_21893511.htm
(China.org.cn by Maverick Chen, July 1, 2009)
