Citic Resources leaps over spin-off report

PUBLISHED : Tuesday, 09 September, 2008, 12:00am
UPDATED : Tuesday, 09 September, 2008, 12:00am

Shares of Citic Resources Holdings rose the most in more than two years after the company announced plans to spin off its manganese unit to raise funds for expansion.

The stock surged as much as 18.75 per cent to HK$1.71, its biggest gain since January 16, 2006, before finishing at HK$1.57, up 9.03 per cent.

The unit of state-owned Citic Group said it had submitted an application to the Hong Kong stock exchange to list its 80 per cent-owned Citic Dameng Holdings on the main board. It did not say how much it was planning to raise.

Sources have said the deal may raise up to US$800 million.

Citic Resources has 135 million tonnes of manganese reserves in Guangxi province. It bought a mine in Gabon for 120 million yuan (HK$137 million) late last year, gaining access to 30 million tonnes of additional reserves. The firm also has oil and coking coal operations.