Zijin Mining to boost Longking stake with up to 2 bn yuan A-share subscription

Zijin Mining Group Co., Ltd. will subscribe in cash for up to 167,926,112 A shares of its subsidiary, Fujian Longking Co., Ltd., via a private placement. The subscription price is 11.91 yuan per share. The total investment will not exceed 2 billion yuan and is intended to replenish Longking's working capital. This move follows a previously terminated subscription attempt in July 2023.

Currently, Zijin Mining and its subsidiaries hold 25% of Longking's total share capital. Post-subscription, this will increase to an estimated 33.76%. The transaction, if approved by Longking’s shareholders’ meeting, may be exempt from a tender offer under relevant takeover regulations.

The investment underscores Zijin's confidence in Longking’s value, reinforcing its controlling interest and providing capital for Longking's "environmental protection + new energy" strategy. Since Zijin acquired a controlling stake in May 2022, Longking has seen improved operating income, net profit, and cash flows, solidifying its leading position in air pollution control and expanding its new energy segment.