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Ximei Surges as Ganfeng Lithium Buys Stake in Chinese Rare Metals Producer
Tang Shihua
DATE:  May 20 2022
/ SOURCE:  Yicai
Ximei Surges as Ganfeng Lithium Buys Stake in Chinese Rare Metals Producer Ximei Surges as Ganfeng Lithium Buys Stake in Chinese Rare Metals Producer

(Yicai Global) May 20 -- Shares in Ximei Resources Holding soared as much as 17.3 percent today after China’s largest lithium compounds producer Ganfeng Lithium Group said it will purchase 16.7 percent equity in the rare metals producer to enhance business synergy and improve profitability.

Ximei’s share price [HKG:9936] was trading up 3.61 percent at HKD4.59 (USD0.58) as of 1 p.m. China time. Earlier in the day it had hit HKD5.20. Ganfeng’s stock [SHE:002460] advanced 0.18 percent to CNY120.75 (USD18).

Ganfeng will purchase 60 million new shares in Ximei at HKD4 apiece, a discount of nearly 10 percent from yesterday’s closing price, in a deal worth HKD240 million (USD31 million), the Xinyu, eastern Jiangxi province-based company said today.

The partnership with Ximei, which is one of the world’s top producers of tantalum and niobium, will allow the two parties to complement each other’s strengths in mineral resources, non-ferrous metal smelting and processing and open up new profit-making areas, Ganfeng said.

The new share sale will raise money for Ximei’s operations and extend its customer reach, the Yingde, southern Guangdong province-based company said. Registered in the Cayman Islands, Ximei’s clients can be found in the aerospace, automobile, electronics, national defense, healthcare and superalloy industries, according to the firm’s website.

Editor: Kim Taylor

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Keywords:   Assets Acquisition,Rare-Earth Compounds,Tantalum,Niobium,Ximei Resources Holding,Gangfeng Lithium