Interfax China reported that Shenzhen-listed Western Metal Material Co Ltd intends to complete its full acquisition of Xi'an-based Western Titanium Co Ltd by the end of June 2009

According to Western Metal Material's previous announcement, the company obtained approval from the China Securities Regulatory Commission in December 2008 to issue between 15 million and 25 million new shares in order to raise a maximum of CNY 550 million.

The funds would help finance the acquisition of a controlling 97.78% stake in Western Titanium as well as per 5,000 tonne titanium processing line technical upgrade project at Western Titanium, which requires investment of CNY 503.7 million. In addition, the company also pledged to buy the remaining 2.22% stake in Western Titanium with its own funds.

According to a Western Metal Material announcement on March 7th the 97.78% stake in Western Titanium is currently valued at CNY 152.59 million down from the previous assessment of CNY 174.24 million which expired on December 31st 2008.

Western Titanium currently has an annual capacity of 3,000 tonnes of titanium ingot and 2,000 tonnes of titanium products.

(Sourced from Interfax)