December 12, 2016 / 1:11 AM / 9 months ago

China Minmetals unit raises $2.3 billion for restructuring

The company logo of Minmetals Resources is displayed outside its headquarters in Hong Kong April 26, 2011. REUTERS/Bobby Yip

SHANGHAI (Reuters) - Kingray New Materials Science & Technology (600390.SS), an electric components firm controlled by the world’s largest metals trader, said it had raised 15 billion yuan ($2.17 billion) to use for restructuring.

The company controlled by China’s Minmetals Corp also said in a statement late on Sunday that it plans to issue shares to acquire Minmetals unit Minmetals Capital Holdings, which owns its financial assets, in a deal worth 17.8 billion yuan.

It will use the 15 billion yuan that it raised from 10 institutions including CITIC Securities (600030.SS) and China Merchants Wealth to replenish capital at the unit, which has subsidiaries spanning financial leasing, banking, futures, securities and asset management.

Reuters reported that Kingray and Minmetals were planning the fundraising in May.

The financial asset restructuring of Minmetals Corp, one of China’s biggest state-owned enterprises, was launched in December after the announcement of its takeover of equipment maker China Metallurgical Group Corp in one of the largest mergers in China’s metals sector.

Reporting by Brenda Goh; Editing by Stephen Coates

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