China Knowledge reported that Hunan Nonferrous Metals Co Ltd China top zinc producer plans to place CNY 3 billion worth of new A shares to its parent Hunan Nonferrous Metals Holding Group Co.

The company said in a statement filed with the Hong Kong Stock Exchange that it plans to issue 1.32 billion new A shares at CNY 2.27 apiece which represented a 2.23% premium over the closing price on Tuesday.

Upon the completion of the deal, the parent will see its shareholding in the Hong Kong-listed subsidiary rise to 65.52% from the current 53.08%.

The company said that it plans to use proceeds from the deal to replenish its working capital, expand production and to fund asset acquisitions.

(Sourced from China Knowledge)