China Vanadium Titano-Magnetite Mining Co the largest non-state owned iron ore producer in Sichuan province said that its parent made a buyout offer of as much as HKD 2.06 billion (USD 266 million).
According to a Hong Kong stock exchange, the company will delist if the offer of HKD 1.93 a share in cash is completed. The buyout by Trisonic International Ltd. is subject to shareholders’ approval.
China Vanadium said it will delist because of low trading volume and poor share-price performance. The average number of shares trading hands fell to 5.3 million in the six months before the company first proposed the buyout on November 1, from 13.7 million in the first half year after the stock debuted on October 8, 2009. The shares have fallen 52% since listing.
China Vanadium didn’t disclose its net asset value per share in the filing. Its net assets attributable to shareholders were CNY 3.33 billion as of June 30.
Sapphire Corp is acting together with Trisonic in the buyout offer.
