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Chalco Firm on SouthGobi Bid Despite Tougher Mongolian Law
Aluminum Corp of China Ltd (NYSE: ACH, SHA: 601600, HKG: 2600), the nation's largest aluminum producer, also known as Chalco, will extend its $920 million offer for a 60% stake in Canada-based, Mongolia-focused SouthGobi Resources Ltd (HKG: 1878) by another 30 days, Chalco and Ivanhoe Mine Ltd (NYSE: IVN), the seller of the stake, said in a joint statement. The deal was postponed for a month on July 5. The decisions came as the Mongolian government became increasingly sensitive about foreign ownership of its mineral resources by adopting a new law that caps foreign ownership in strategic industries such as mining at 49%, unless the buyer obtains parliamentary approval. SouthGobi produces coking and thermal coals.
China Telecom to Buy CDMA Network from Parent
China Telecom Corp (NYSE: CHA, HKG: 0728) said it plans to spend approximately ¥120 billion purchasing the CDMA network from its parent in late August. The company will employ debt financing instead of additional share offerings to fund the acquisition, a person with knowledge of the issue said. China Telecom currently rents the network to serve its 126 million customers.
Class Action Filed Against Ambow Education
Glancy Binkow & Goldberg LLP, a US law firm, said it has launched a class action against Ambow Education Holding Ltd (NYSE: AMBO), a Chinese vocational training service provider, representing individuals and entities who bought its American depository shares between May 18, 2011 and May 16, 2012. Glancy Binkow & Goldberg accused Ambow of releasing false and misleading information to attract buyers, therefore causing them huge losses. Ambow is also accused of covering up negative reports.
Vanke Spends More on Land Purchases in Jul Alone Than in 1H
China Vanke Co (SHE: 000002), the nation's top property developer, bought about ¥6 billion worth of land in July; the amount was more than the company paid for land acquisitions in 1H 2012, during which it paid ¥5.4 billion for 1.12 million m2 of land. In response to speculations that the company was optimistic about China's real estate market, Vanke chairman's assistant said its land acquisitions in July means nothing special and the company stays cautious about the market.
Suning Cuts PC Prices
Suning Appliance Co (SHE: 002024), China's largest chain store by revenue, said its stores will begin selling personal computers at the same prices being offered at its e-commerce site by the end of August in a move to snatch a larger market share. Should the scheme pay off, Suning will likely apply the practice to other goods, market watchers say.
Hisense Electric Builds Factory in South Africa
Hisense Electric Co (SHA: 600060), a Chinese consumer electronics maker, said it will build factories on a newly bought industrial estate in South Africa. Hisense will invest $30.25 million building a plant capable of producing 400,000 3D TVs and 400,000 refrigerators annually, to be sold in South Africa. Inferior goods will be sold in other Sub-Saharan nations.
$1 = ¥6.34
@2011 China Economy @ The China Perspective.
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