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March 4, 2008 |
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JIANGXI COPPER: Seeks To Buy 4.2% Stake in Nanchang Bank Jiangxi Copper Co. will buy a 4.2% stake in Nanchang City Commercial Bank for CNY280 million in cash, China Daily reports. It will buy 100 million new shares to be issued by Nanchang Bank at CNY2.8 apiece, Jiangxi Copper told the Shanghai Stock Exchange, as cited by China Daily. The equity purchase still needs regulatory approval and would make Jiangxi Copper the bank's second largest single shareholder. "Although the stake is small, it demonstrates that Jiangxi Copper is flush with cash due to rising prices and strong demand for copper products in the past year," Liu Chao, an analyst at Xiangcai Qinian Futures Co. in Shanghai, told China Daily. "Investment by listed companies like Jiangxi Copper will help inject more capital to finance commercial banks' further development," Liu Chao of Xiangcai Qinian Futures related to China Daily. Experts also told China Daily that the mining company's capital injection into a commercial bank in the same province will also benefit the provincial economy. Nanchang is the capital city of Jiangxi province. Jiangxi Copper Company Limited -- http://www.jxcc.com/ -- is an integrated producer of copper in the People's Republic of China. The company's operations consist of copper mining, milling, smelting and refining to produce copper cathode and other related products, including pyrite concentrates, sulphuric acid and electrolytic gold and silver. It also provides smelting and refining services pursuant to tolling arrangements for customers. Xinhua Far East China Ratings gave the company a BB+ issuer credit rating. |
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