Thursday, 22 Dec 2011
It is reported that Gansu Jingyuan Coal Industry And Electricity Power intends to issue 162.59 million shares to controlling shareholder, Jingyuan Coal Group at CNY 16.36 per share in order to purchase CNY 2.66 billion worth of coal assets from the latter.
The assets to be purchased include Baiyin Energy Saving Thermal, Qingmei Engineering Investigation, Jinghong Storage and Transportation, Jingyuan Coal Yilin Resource Development and other related assets.
The assets recorded total revenue of CNY 2.519 billion and net profit of CNY 286 million during the first three quarters of 2011. After the completion of the transaction, Jingyuan Coal Group will have 246 million shares or a 72.37% stake in the listed company.
The acquisitions will increase Jingyuan Coal recoverable coal reserves by 250 million tonnes and raise mine production volume by 7.63 million tons per year.
It was reported that the transaction will solve the problem of horizontal competition between Jingyuan Coal and Jingyuan Coal Group.
(Sourced from Shanghai Securities News)
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