New | Shares in Hunan Nonferrous Metals surge on privatisation plan

Shares in Hunan Nonferrous Metals soared as much as 60 per cent in morning trading on Friday after plans for a privatisation of the company were revealed.

The mainland’s largest producer of non-ferrous metals excluding aluminium said its parent Hunan Nonferrous Group (HNG) will acquire all the issued domestic shares of the company, it said in a statement to the Hong Kong exchange on Friday morning.

The offered price for its H shares is HK$4.20 each in cash, representing a premium of 68.7 per cent over the last closing price of HK$2.49 before trading in the shares was suspended on October 29.

The stock ended the morning session on Friday up 53.4 per cent at HK$3.82.

The company plans to delist the H shares if the proposal succeeds.

Hunan Nonferrous Metals said certain businesses of HNG overlaps with its own, citing the tungsten production business as well as in research and development of non-ferrous metals. “After the completion of the delisting and the merger, HNG and the company will be better positioned to eliminate overlaps, align interests and integrate resources”, according to stock exchange statement.