It is reported that Henan Shen Huo Coal Industry and Electricity Power a producer of coal, aluminum products and electricity plans to raise up to CNY 1.935 billion through a private placement of a maximum of 160 million shares at not less than CNY 13.46 per share.
Proceeds raised will be used for the acquisition of 28 small coal miners in Henan province. Of the total funds raised, CNY 652.8 million will be spent on the integration of coal resources.
Shen Huo Coal will inject CNY 560.1 million of the funds raised into a wholly owned subsidiary, Xuchang Shenhuo Mining Group. The funds will be used to boost the capital of Zhengzhou Shenhuo Mining and for the acquisition of 21 small coal miners in Xuchang and their operational assets.
The remaining CNY 92.59 million will be injected directly into Zhengzhou Shenhuo Mining for the acquisition of seven small coal miners in Zhengzhou.
Shenhuo said the deals will help to increase its coal reserves by 153.55 million tons of which 65.97 million tons are renewable. Its annual coal output capacity will be increased by 4.62 million tonnes.
The government of Henan province had published guidelines for the integration of coal miners in February 2010. It had selected six large state-owned coal miners including Shen Huo Group, as the platforms to integrate and restructure all the coal miners with capacities of 150,000-300,000 tons per year in the province.
Shenhuo Group will integrate 44 small coal miners and had tasked the listed Shen Huo Coal to execute the integration. Shenhuo will spend another CNY 688 million on the purchase of equipment for underground emergency shelters and inject the remaining CNY 550 million as working capital.
Pursuant to the notification by the State Administration of Coal Mine Safety, state owned coal mines must build enhanced emergency shelter systems by the end of June 2012. All other mines must complete the task by the end of June 2013.
(Sourced from China Securities Journal)
Proceeds raised will be used for the acquisition of 28 small coal miners in Henan province. Of the total funds raised, CNY 652.8 million will be spent on the integration of coal resources.
Shen Huo Coal will inject CNY 560.1 million of the funds raised into a wholly owned subsidiary, Xuchang Shenhuo Mining Group. The funds will be used to boost the capital of Zhengzhou Shenhuo Mining and for the acquisition of 21 small coal miners in Xuchang and their operational assets.
The remaining CNY 92.59 million will be injected directly into Zhengzhou Shenhuo Mining for the acquisition of seven small coal miners in Zhengzhou.
Shenhuo said the deals will help to increase its coal reserves by 153.55 million tons of which 65.97 million tons are renewable. Its annual coal output capacity will be increased by 4.62 million tonnes.
The government of Henan province had published guidelines for the integration of coal miners in February 2010. It had selected six large state-owned coal miners including Shen Huo Group, as the platforms to integrate and restructure all the coal miners with capacities of 150,000-300,000 tons per year in the province.
Shenhuo Group will integrate 44 small coal miners and had tasked the listed Shen Huo Coal to execute the integration. Shenhuo will spend another CNY 688 million on the purchase of equipment for underground emergency shelters and inject the remaining CNY 550 million as working capital.
Pursuant to the notification by the State Administration of Coal Mine Safety, state owned coal mines must build enhanced emergency shelter systems by the end of June 2012. All other mines must complete the task by the end of June 2013.
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