Shenhuo Group to take a stake in Longzhou aluminum
2020-08-18 15:41:12 [Print]
Shenhuo Group announced on August 17th, in view of the rich bauxite reserve in Longzhou region of Guangxi and the good prospects of Guangxi Longzhou Xinxiang Ecological Aluminum Industry Co., Ltd. (Longzhou Aluminum), it decided to take a stake in Longzhou Aluminum at no cost as the transferee for Hangzhou Jinjiang Group Co., Ltd.'s (Jinjiang Group) RMB441 million (USD63.64 million) rights and obligations on Longzhou Aluminum, in order to adjust and optimize assets structure, reduce the dependence on alumina market, improve the ability to resist market risk.
After the completion of the transaction, the registered capital of Longzhou Aluminum remains unchanged at RMB1,255 million (USD181 million), but Shenhuo Group will hold 36% of the equity of Longzhou Aluminum; the original shareholders Jinjiang Group, Guangxi Chongzuo Jianzhuo Asset Management Co., Ltd. and Guangxi Longzhou Industrial Transportation Investment Co., Ltd. respectively hold 34%, 20% and 10% of the equity of Longzhou Aluminum. The company will become the largest shareholder of Longzhou Aluminum, but not the controlling shareholder. Longzhou Aluminum is not included in the scope of the company's consolidated statement.
After the completion of the transaction, the registered capital of Longzhou Aluminum remains unchanged at RMB1,255 million (USD181 million), but Shenhuo Group will hold 36% of the equity of Longzhou Aluminum; the original shareholders Jinjiang Group, Guangxi Chongzuo Jianzhuo Asset Management Co., Ltd. and Guangxi Longzhou Industrial Transportation Investment Co., Ltd. respectively hold 34%, 20% and 10% of the equity of Longzhou Aluminum. The company will become the largest shareholder of Longzhou Aluminum, but not the controlling shareholder. Longzhou Aluminum is not included in the scope of the company's consolidated statement.
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