China Zhongwang to acquire carbide alloy producer
Shanghai. February 8. INTERFAX-CHINA - China Zhongwang Holdings Ltd., a Hong Kong Stock Exchange-listed subsidiary of Liaoning Zhongwang Group Co. Ltd., China's leading aluminum extrusion producer, will acquire Qinghai Province-based Guoxin Aluminum Industry Inc., state media reported on Feb. 8.
According to a report in the Chinese-language Beijing Youth Daily, China Zhongwang plans to spend RMB 1.35 billion ($197.74 million) to fully acquire Guoxin Aluminum. The transaction, which is still subject to approval from the Qinghai Branch of the State-owned Assets Supervision and Administration Commission, is expected to be completed around the Chinese New Year holiday.
The transaction will help China Zhongwang to expand its production capacity and to improve its production chain, the report noted.
China Zhongwang is a 535,000-ton aluminum profile producer. It generated a net profit of RMB 2.4 billion ($351.53 million) in the first nine months of 2009. The company temporarily suspended trading on the Hong Kong Stock Exchange from Jan. 7 this year. Although the company has not disclosed a reason for its temporary suspension, the market believes it is in relation to the acquisition of Guoxin.
Guoxin Aluminum is a state-owned carbide alloy producer, with an annual production capacity of 120,000 tons.