China Yunnan Aluminium plans $175.6 mln placement

Yunnan Aluminium Co Ltd (000807.SZ) plans to raise up to 1.2 billion yuan ($175.6 million) to fund an alumina project through a private placement of domestically listed A-shares, the company said on Friday.

Yunnan Aluminium plans to issue up to 200 million shares to no more than 10 select investors, with its parent, Yunnan Metallurgical Group Co Ltd, claiming at least 50 percent, Yunnan Aluminium said.

The shares will be priced at at least 6.31 yuan, or 90 percent of the average price over the past 20 trading days, the company said in a filing to the Shenzhen Stock Exchange.

The plan still needs approval from shareholders and China's securities regulator, the company said.

The alumina project, in Wenshan in southwestern China's Yunnan province, will have annual alumina production capacity of 800,000 tonnes. It will require total investment of 4.5 billion yuan and take three years to complete, the company said.

The company also plans to give up last year's plan to raise 1.1 billion yuan by issuing convertible bonds to fund the project. ($1=6.832 Yuan)

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