Deals
Chalco Agrees to Acquire SouthGobi Stake to Gain Coal Mines
This article is for subscribers only.
Aluminum Corp. of China Ltd., the nation’s biggest producer of the metal, agreed to buy Ivanhoe Mines Ltd.’s stake in SouthGobi Resources Ltd. to gain control of Mongolian coal production as it expands into other commodities and diversifies revenue.
Ivanhoe will tender its 57.6 percent stake in SouthGobi into Chalco’s C$925 million ($928 million) offer to buy as much as 60 percent of the company at C$8.48 a share, 28 percent more than its close in Toronto on March 30, Chalco, as the Chinese company is known, said in a statement today from. Should shareholders tender more than 60 percent of the stock, the amount sold by Ivanhoe may be reduced, according to a statement from Ivanhoe.