Winsway Coking Coal Holding Ltd., which process and transports coal to China from Mongolia, rose by the most on record in Hong Kong today with trading volumes almost six-fold the daily average.
Shares gained 23 percent to HK$1.59 for their biggest gain since the company listed in October 2010. There were 11 block trades of more than 500,000 shares completed today, according to data compiled by Bloomberg. There were 65.4 million shares sold today, compared with the daily average of 11.6 million in the past year.
A company official who refused to be identified declined to comment when asked about the share movement today.
In April, China’s biggest aluminum producer Aluminum Corp. of China Ltd., also known as Chalco, agreed to pay HK$2.39 billion ($308 million) for 29.9 percent of Winsway at HK$2.12 per share to become the largest holder. Before today, Winsway’s shares had fallen 31 percent since the deal was announced.
Chalco’s shareholders are set to vote on the deal on June 29. If approved, Chalco will buy about 1.1 billion shares from Winsway Chairman and Chief Executive Officer Wang Xingchun.
“My wild speculation is that probably Chalco is buying all the shares in block trades to push up the share price to the level” that it struck the deal at to win shareholder support, Helen Lau, a Hong Kong-based analyst with UOB-Kay Hian Ltd, said today by phone. “If I were the shareholder of Chalco I would vote against the deal” at this price, she said.
Shen Hui, a spokeswoman for Chalco, said she had no information about Winsway’s shares.
Winsway last October agreed to buy Calgary-based Grande Cache Coal Corp. jointly with Japanese trading house Marubeni Corp. for about C$1 billion ($1.02 billion). In February, Executive Director Paul Struijk said the company was seeking mines in Australia, Canada and Russia to add production.