Zijin Mining to increase stake in Fujian Longking through private placement

Zijin Mining Group Co. Ltd. will subscribe to a private placement of up to 167,926,112 shares of Fujian Longking for up to 2 billion yuan, increasing its stake from 25.00% to 33.76%. This transaction requires approvals from state-owned asset authorities, shareholders, the Shanghai Stock Exchange, and the China Securities Regulatory Commission (CSRC). Zijin Mining has committed to a 36-month lock-up period for the newly acquired shares, making it eligible for an exemption from a general offer.

The acquisition follows Fujian Longking’s previous fundraising efforts, which included a 2 billion yuan convertible bond issuance in March 2020. The company has fully utilized these funds for projects such as the Pinghu Ecological Energy Project and the Heilongjiang Duobaoshan 200MW Wind and Solar Power Project.

Fujian Longking has faced regulatory scrutiny over the past five years, including administrative penalties and warnings from the Fujian CSRC and Shanghai Stock Exchange. These actions primarily addressed non-operating fund occupation by its former controlling shareholder and related parties, as well as short-swing trading by a director's family member. The company has implemented corrective measures to enhance internal controls and information disclosure.