China aluminium firm Shandong Innovation set for backdoor listing

China Hongqiao

06/08/2021 16:23

Aug 6 (Reuters) - Chinese aluminium products maker Shandong
Innovation Metal Technology Co is set to secure a backdoor stock
market listing in Shanghai after a supermarket operator
announced a $1.9 billion deal to acquire the firm.
    Shanghai-listed Beijing Hualian Hypermarket  600361.SS  said
in a filing it had signed an agreement to buy all of unlisted
Shandong Innovation for 12.1 billion-12.2 billion yuan ($1.87
billion-$1.88 billion) by issuing new shares to Shandong
Innovation shareholders.
    The transaction will allow Shandong Innovation, a major
aluminium fabricator based in the city of Zouping, to assume
Hualian's listing on the Shanghai Stock Exchange - and get
access to a new fundraising channel - without the need for an
initial public offering (IPO).
    Zouping is also home to top private-sector aluminium smelter
China Hongqiao Group  1378.HK . 
    Hualian, which said it intended to dispose of all its
existing assets, said competition in the retail industry is
"fierce," with the advent of e-commerce having brought
challenges to the supermarkets business.
    Meanwhile, the potential for growth in aluminium usage in
the automotive sector and solar power is large, it added.
    Shandong Innovation, a member of the International Aluminium
Institute, did not immediately respond to a request for comment
outside normal business hours.    

($1 = 6.4740 Chinese yuan renminbi)

 (Reporting by Tom Daly; Editing by David Gregorio)
 ((tom.daly@thomsonreuters.com; +86 10 5669 2119;))