DJ China Regulator OKs Chalco Plan To Absorb Baotou Aluminium

SHANGHAI (Dow Jones) — Aluminum Corp. of China Ltd. (ACH), or Chalco, said Monday China’s securities regulator approved its plan to take over affiliate Baotou Aluminium Co.

Chalco, China’s largest aluminum and alumina producer by output, said in July it planned to absorb Baotou Aluminum through a share swap worth up to US$1.7 billion.

Under the share-swap proposal, Chalco will issue 1.48 yuan-denominated A shares for each of Baotou Aluminum’s 431 million Shanghai-listed shares.

Chalco’s parent, Aluminum Corp. of China, or Chinalco, indirectly holds 55.06% of Baotou Aluminium.

Baotou Aluminium produces aluminum, aluminum alloys and carbon products.