BEIJING (Reuters) – China Minmetals Corp, the country’s largest metals trader, is raising 15 billion yuan ($2.3 billion) from investors to help restructure and list its financial assets, a collection document shows. of funds consulted by Reuters.
Kingray New Materials Science & Technology, controlled by loss-making electrical component maker Minmetals, is seeking to issue shares to a subsidiary of Minmetals Corp, China Minmetals Corp Ltd, to acquire 100% of Minmetals Capital Holdings, which owns the financial assets of the metal trader, the document shows.
Minmetals Capital has financial subsidiaries covering leasing, banking, futures, securities and asset management.
Kingray will also issue shares to Minmetals Corp to buy its 10% stake in ICBC-AXA Life, according to the document. The total financial assets expected to be injected into Kingray during the restructuring are estimated at 19.7 billion yuan, he said.
After the restructuring, Minmetals Corp’s financial assets will be listed on the stock exchange through Shanghai-listed Kingray, a move to “build a leading financial holding platform in China.”
Contacted by Reuters, Kingray declined to comment. State-owned Minmetals Corp did not immediately respond to requests for comment.
Kingray revealed it signed a restructuring framework to acquire Minmetals Capital in a separate filing today, without mentioning the size of the deal or the fundraising.
The $2.3 billion private placement is expected to target large financial and strategic investors. Investment agreements are expected to be signed by mid-May, according to the document.
The restructuring of the financial assets of Minmetals Corp, one of China’s largest state-owned companies, was launched following its announcement to buy equipment maker China Metallurgical Group Corp in one of the largest mergers of the Chinese metals sector.
Over the past two years, Beijing has sought to overhaul its state-owned enterprises (SOEs) to create greater efficiency and increase the international competitiveness of government conglomerates.
Kingray posted a net loss of 370 million yuan in 2015, compared to a loss of 28 million yuan in 2014, according to its annual report. It issued a delisting risk warning in April after reporting losses for two consecutive years.
Reporting by Shu Zhang and Matthew Miller; Editing by Clarence Fernandez and Christian Schmollinger