HomeChina Stock News Acquisition of Baotou Al to lift Chalco 07 EPS by 0.01 yuan
Acquisition of Baotou Al to lift Chalco 07 EPS by 0.01 yuan
Written by Administrator
Monday, 10 December 2007
BEIJING, Dec. 10 (InfoChina) – Acquisition of Baotou Aluminum (600472.SH) is expected to contribute 0.01 yuan to Chalco (ACH.NYSE; 2600.HK; 601600.SH) EPS for 2007 by calculating with the two companies’ predicted performance this year, TX Investment Consulting forecasts.
The contribution is almost negligible compared with Chalco’s EPS of 0.97 yuan in 2006 and 0.68 yuan in the first three quarters of 2007.
But TX Investment Consulting keeps “buy” rating on Chalco.
According to the buyout scheme, Chalco will place new A shares in exchange for the shares of Baotou Aluminum at each Baotou Aluminum share for 1.48 Chalco’s new shares. Chalco will acquire 237.3093 million shares of Baotou Aluminum, accounting for 55.06 percent of the latter’s capitalization.
As Baotou Aluminum’s A-share price has a 32 percent premium in comparison with that of Chalco and a 16 percent discount over the share swap ratio of 1:1.48, TX Investment remains “buy” rating on Baotou Aluminum.
Chalco rose 8.67 percent to close at 40.73 yuan on Shanghai bourse, and Baotou Aluminum nailed at 54.22 yuan, shooting up a limit-up of 10 percent.(Edited by Li Xueqing,
)
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