Chaoyue to Acquire Scrap Metal Producers for HK$10 Billion
Chaoyue Group Ltd. (147) agreed to buy two Chinese makers of stainless steel and copper products for HK$10 billion ($1.3 billion) after selling its main water purification businesses.
Chaoyue will pay Chung Ming Metal Resources Holdings Ltd. HK$3 billion in cash for the acquisition, it said today in a statement to the Hong Kong stock exchange. The rest of the payment will be in shares and convertible bonds, it said.
“The group has been focusing on finding suitable investments that present development opportunities and also able to provide a sustainable stream of cash flow and profit in the long run,” Chaoyue said.
Chaoyue is seeking to tap into the recycled metal market in China after selling its water purification equipment and most of its stake in a mining operation last year. The assets will make Chaoyue one of the 10 biggest scrap-based stainless steel producers and one of the five largest scrap-based copper makers in China, it said.
To contact the editor responsible for this story: Jason Rogers at firstname.lastname@example.org