Guangxi Nonferrous may list assets in Shenzhen
Shanghai. November 26. INTERFAX-CHINA - Guangxi Nonferrous Metals Group Co. Ltd., a state-owned nonferrous metals producer, may inject some of its assets into Shenzhen Stock Exchange-listed Guilin Guanglu Measuring Instrument Co. Ltd., according to the latter's announcement on Nov. 26.
Guanglu Measuring said that it is now in talks with Guangxi Nonferrous for a deal that will bring about big changes to the company's structure. It may announce a preliminary plan before Dec. 11.
"Guangxi Nonferrous may want to swap the assets of its tin subsidiary Liuzhou China Tin Group Co. Ltd. with Guanglu Measuring, as it unsuccessfully planned to do with Shanghai Stock Exchange-listed Henan Oriental Silver Star Investment Co. Ltd. earlier this year," analyst Lin Haoxiang from Guotai Junan Securities told Interfax.
In early July this year, Guangxi Nonferrous attempted to list its assets on the Shanghai Stock Exchange through an asset-share swap with Oriental Silver, but the deal fell through.
Guangxi Nonferrous, based in the Guangxi Zhuang Autonomous Region, was set up in July 2008 to consolidate non-bauxite nonferrous resources in the region. Its subsidiary China Tin Group currently has an annual ore processing capacity of 2.5 million tons, and an annual production capacity of 25,000 tons of tin, 60 tons of indium and 60,000 tons of zinc. It also owns one-third of China's 1.3 million tons of proven tin resources, as well as the world's largest indium deposit.
Guanglu Measuring's share trading has been suspended since Nov. 12, pending an announcement, and the company expects to resume trading on Dec. 11. Its shares ended at RMB 14.84 ($2.17) on Nov. 11, up 10.01 percent from the previous trading day.
-LCL