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Xiamen Unigroup Xue may pay CNY 24bn for Xinjiang Tianshan
Posted on Tuesday, 12 June 2018 12:23
Xiamen Unigroup Xue may buy Xinjiang Tianshan Aluminum in a CNY 23.60 billion (USD 3.69 billion) deal that Zephyr, the M&A database published by Bureau van Dijk, shows would be one of the sector’s largest on record.
The cash and stock proposal, which will be partially bankrolled via a cash call, could rank within the top ten mergers and acquisitions (M&A) of a global aluminium production and processing company, should it go ahead.
However, the so-called major asset restructuring of the Tsinghua University affiliate is still under discussion and details, such as the final price and the timeframe, are not yet known.
Zhang Rufeng, a manager at consultancy Baiinfo, told Reuters Xinjiang Tianshan may well agree to the deal in order to gain admission to the boards via Xiamen Unigroup.
The Shenzhen-listed company has had its shares suspended from trading since March, when it first announced plans to acquire the smelter with annual capacity of 1.40 million tonnes.
Xinjiang Tianshan is involved in the production and sales of ingots, and alumina, aluminium, magnesium and carbon products, and anode carbon blocks, as well as warehousing services, among other things.
The group has been upgrading and expanding output volume in recent years to sharpen its competitive edge in the industry.
It previously had XinRen as a shareholder, which increased its 21.0 per cent equity interest in the large-scale, coal-powered smelter to 51.0 per cent.
So far this calendar year, companies operating in the global aluminium sector have announced or completed 53 M&A deals.
Currently, the largest by value features China Hongqiao Group completing a placing and top-up subscription, the latter of which raised USD 798.10 million to pay down debt.
© Zephus Ltd