Eight investors to boost equity in Aluminum Corporation of China
By replacing creditor debt with equity and seasoned equity offerings, the total capital of the group has been increased to US$1.9 billion
The Aluminum Corporation of China Limited, a multinational company listed in Hong Kong and New York, said in an announcement that it will introduce eight investors, including Huarong Ruitong, China Life Insurance Company, Warburg Pincus and China Cinda Asset Management to implement a debt-to-equity replacement plan, Yicai.com reported.
These companies are the creditors of four wholly-owned subsidiaries of the Aluminum Corporation, including Shandong Aluminium Industry Company, Chinalco Mining Corporation International and two branches in Zhongzhou and Baotou city.
By replacing creditor debt with equity and seasoned equity offerings, the total capital of the group has been increased to 12.6 billion yuan (US$1.9 billion).
During voting in the shareholders’ meeting, investors and their appointed directors both promised to act in concert with the target companies.
Following the capital increase, the Aluminum Corporation of China will retain the right to control the subsidiaries of the company.