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China explosives maker to buy coal miner for $3.1 bln
November 27, 2017 / 12:32 PM / 16 days ago

China explosives maker to buy coal miner for $3.1 bln

BEIJING, Nov 27 (Reuters) - Chinese explosives maker Anhui Leimingkehua Co Ltd said on Monday it would acquire a state-run coal miner in a $3.1 billion deal as part of the Chinese government’s push to boost efficiency at state-owned enterprises.

Anhui Leimingkehua said it and a subsidiary plan to buy Huaikuang Co Ltd, a coal miner based in eastern China’s Anhui province, for 20.3 billion yuan ($3.08 billion) in cash and newly-issued shares.

The company aims to raise up to 700 million yuan in a private placement of shares to help fund the acquisition, it said in a statement.

The coal miner, which is also the largest producer of coke in eastern China, reported an unaudited revenue between January and July this year of 31.96 billion yuan, according to Leimingkehua’s filing to the Shanghai Stock Exchange.

The miner had coal reserves of about 3.7 billion tonnes at the end of 2016.

“The deal is part of the government’s push to reform the state-owned sector and boost the securitisation of state-owned assets,” the company said.

$1 = 6.6010 Chinese yuan renminbi Reporting by Chen Aizhu; Editing by Adrian Croft

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