Shenghe Resources to Transfer Stake in Rare Earth Smelting Firms; Shares Down 7%

MT Newswires Live10-19 15:03

Shenghe Resources (SHA:600392) plans to transfer part of its equity interests of its rare earth smelting and separation business to China Rare Earth Group Industrial Development, according to a Shanghai bourse filing on Monday.

The interests include 51% of Quannan New Resources Rare Earth, Jiangyin Jiahua New Materials Resources and Zibo Jiahua New Materials Resources each.

The appraisal of the companies is still in progress, but their estimated value ranges from 3.25 billion yuan to 3.55 billion yuan.

The final consideration is expected to be between 1.66 billion yuan and 1.81 billion yuan.

The mining company's shares dropped 7% during the afternoon trade.

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