Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

UPDATE 1-Australia lithium miner Altura says former top investor Shaanxi J&R sells entire stake

Published 20/06/2019, 04:44 pm
© Reuters.  UPDATE 1-Australia lithium miner Altura says former top investor Shaanxi J&R sells entire stake
002460
-
1MC
-
300116
-

* Chinese firm sold final 11.8% stake, buyer identity unclear

* Battery maker Shaanxi J&R hobbled by restructuring

* Altura shares jump 20%; relief at end of perceived risk

* Debt could hit ability to buy contracted Altura supply -Shaanxi J&R (Recasts, adds background on Shaanxi J&R restructuring)

MELBOURNE, June 20 (Reuters) - Australia's Altura Mining AJM.AX said on Thursday its former biggest investor and one-time suitor, China's Shaanxi J&R Optimum Energy 300116.SZ , has sold its entire remaining 11.8% stake in the lithium miner.

At Altura's latest closing price, the stake would have been worth A$24.1 million ($16.60 million). It wasn't immediately clear who bought the shares from the indebted Shenzhen-based battery maker: As a block, the shares would be equal to the miner's second biggest shareholding.

A Shaanxi J&R spokesman confirmed the pullout, and said it was possible the company's debt situation would affect its ability to buy its contracted supply from Altura.

Altura shares jumped as much as 20% after the sale was announced, reflecting relief at the departure of an investor hobbled by a restructuring plan that prompted Shaanxi J&R to start cutting its holding from the 14.4% stake it held as of February. That stake had made it the no.1 investor in the lithium miner.

Shaanxi J&R had been its major customer, and even envisaged buying out Altura at one stage. But it ended up scrapping those ambitions when it was forced into restructuring after being badly hit by changes to China's subsidy policy for electric vehicles. also agreed late last year to halve its minimum contracted supply from Altura to 50,000 tonnes a year from 2019. battery giant Ganfeng Lithium 002460.SZ is Altura's biggest customer, having signed a deal late last year.

One of China's biggest battery makers for electric vehicles, Optimum Nano, a unit of Shaanxi J&R, slashed production levels to around 20% of capacity as the company sought to pay off debt last year.

($1 = 1.4516 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.