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China Vanadium Parent Makes Buyout Bid of HK$2.06 Billion

China Vanadium Titano-Magnetite Mining Co. (893), the largest non-state-owned iron ore producer in Sichuan province, said its parent made a buyout offer of as much as HK$2.06 billion ($266 million).

The company will delist if the offer of HK$1.93 a share in cash is is completed, according to a Hong Kong stock exchange filing yesterday. The buyout by Trisonic International Ltd. is subject to shareholders’ approval, it said.

China Vanadium said it will delist because of low trading volume and poor share-price performance. The average number of shares trading hands fell to 5.3 million in the six months before the company first proposed the buyout on Nov. 1, from 13.7 million in the first half-year after the stock debuted on Oct. 8, 2009. The shares have fallen 52 percent since listing.

The stock gained 1.2 percent to close at HK$1.67 on Dec. 19, its last day of trading before suspension.

China Vanadium didn’t disclose its net asset value per share in the filing. Its net assets attributable to shareholders were 3.33 billion yuan as of June 30, according to yesterday’s filing, about HK$4.14 billion at today’s exchange rate. That gives about a HK$2 NAV per share, based on its 2.08 billion shares outstanding.

Sapphire Corp. (SAPP) is acting together with Trisonic in the buyout offer.

To contact the reporter on this story: Joshua Fellman in New York at

To contact the editor responsible for this story: Joshua Fellman at

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