Huayou Cobalt sells BCM stake for $121m, redeems convertible bonds

Zhejiang Huayou Cobalt Co. announced the sale of 25% of its equity in LG-HY BCM Co. (BCM Company), totaling 13,113,798 shares, to Toyota Tsusho Corporation for $12,119.57. This transaction is anticipated to generate an investment income of approximately 472,560,600.00 yuan and will reduce Huayou Cobalt's stake in BCM Company from 49% to 24%. The sale, approved by the board on September 8, 2025, aims to optimize BCM's equity structure and enhance its market competitiveness.

In a separate development, Zhejiang Huayou Cobalt announced the early redemption and delisting of its "Huayou Convertible Bonds." The redemption registration date is September 26, 2025, with a redemption price of 100.8918 yuan per bond. The last trading day for the bonds is September 23, 2025, and the last conversion day is September 26, 2025. The company’s convertible bonds will be delisted from the Shanghai Stock Exchange on September 29, 2025.

Bondholders are urged to convert or sell their bonds by the specified deadlines, as forced redemption could lead to significant investment losses given the current market price difference compared to the redemption price. This dual announcement signifies strategic financial and operational adjustments for Zhejiang Huayou Cobalt.