Chalco discloses on Jan. 31 that it plans to issue shares to repurchase all outstanding shares of its four subsidiaries. The transaction is estimated to reach 12.704 billion yuan(≈$2 billion), including 25.67% stake in Baotou Aluminum, 30.80% stake in Chalco Shandong, 36.9% stake in Zhongzhou Aluminum, and 81.14% stake in Chalco Mining. After the repurchase, the four companies will become Chalco’s wholly owned subsidiaries.
Chalco is listed on the Shanghai Stock Exchange and the Hong Kong Exchanges and has been suspended since Sep. 12, 2017. Benefiting from rising alumina and aluminum prices, the company expects full-year net profit to increase 269% to 1.362 billion yuan ($214 million) in 2017.