Chinese aluminium group launching biggest global IPO to date

New mining listing? Tough mining markets? Yes and no: think China Zhong Wang, a big producer of aluminium.

Author: Barry Sergeant
Posted:  Monday , 20 Apr 2009


JOHANNESBURG  - 

Mining companies around the world have so far in 2009 raised nearly USD 60bn, all of it completely outside any banking system/s, but to date none of the capital has come in by way of an IPO (initial public offer), which entails a new listing. Today China Zhong Wang, the aluminium division of holding company Liao Ning Zhong Wang Group, started marketing for its planned 8 May listing in Hong Kong, that would involve raising up to the equivalent of USD 1.6bn, equal to 26% of its enlarged capital. 

If the stock lists at that valuation, its full value would be USD 6.6bn, which would rank China Zhong Wang as the third most valuable listed specialist aluminium stock, after

Chalco, with a market value of USD 15.6bn, and Alcoa, which currently carries a market value of USD 9bn. Russia's Evraz, which, like Alcoa, tends to rank itself as the world's biggest aluminium entity, remains unlisted. Then again, Rio Tinto Alcan markets itself as "the global leader in the aluminium industry". 

Should China Zhong Wang succeed in its IPO, at the kind of price level it is suggesting, this would be the world's biggest IPO in the year to date, across all global equity sectors. Aluminium, however, is the least recovered of the base metals, given a stubborn composite refusal by the global sector to amend supply in line with changed demand conditions. 

http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=82069&sn=Detail

 

 http://www.zhongwang.com/

http://www.hkexnews.hk/index.htm

 

Co Reg No. 200414721N

12 International Business Park, CyberHub@IBP #04-01 Singapore 609920

Tel: +65 6505 0800 Fax: +65 6505 0802

http://www.swiber.com

A World Class Company

In the Offshore Industry

RECLASSIFICATION OF SUB-ITEMS IN THE CONSOLIDATED CASH FLOW STATEMENT IN THE

UNAUDITED FULL YEAR FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT FOR THE

YEAR ENDED 31 DECEMBER 2008

The Board of Directors of Swiber Holdings Limited (the “Company”) wishes to announce that subsequent

to the release of the Company’s announcement of its unaudited results for the year ended 31 December

2008 on 28 February 2009, the Auditors of the Company has made certain reclassification to the

unaudited consolidated cash flow statement of the Group for the financial year ended 31 December 2008.

In the Company’s Annual Report FY2008 the audited Consolidated Cash Flow Statement for the year

ended 31 December 2008 is provided in pages 49 and 50.

Shareholders are to note that the reclassification did not have any impact on the Company’s results.

The Company wishes to clarify the aforesaid reclassification by appending below the Unaudited

Consolidated Cash Flow Statement and Audited Consolidated Cash Flow Statement for the year ended

31 December 2008:-

Consolidatd cash flow statement

Year ended 31 December 2008

Audited Unaudited Differences Notes

US$'000 US$'000 US$'000

Operating activities

Profit before income tax 45,235 45,235 -

Adjustments for :

Interest income (832) (832) -

Allowance for doubtful debts 4,043 4,043 -

Interest expense 11,131 11,131 -

Depreciation of property, plant and equipment 8,656 8,656 -

Property, plant and equipment written off 10 10 -

Gain on disposal of property, plant and equipment (3,377) (3,377) -

Gain on disposal of assets held for sale (12,279) (12,279) -

Provision for employee benefits (18) (18) -

Negative goodwill - - -

Share of profit of associate and joint venture (2,839) (2,839) -

Operating cash flows before movement in working

capital 49,730 49,730 -

Trade receivables (21,099) (21,099) -

Engineering work-in-progress in excess of progress

billings (79,387) (79,387) -

Swiber Holdings Limited

Co Reg No. 200414721N

12 International Business Park, CyberHub@IBP #04-01 Singapore 609920

Tel: +65 6505 0800 Fax: +65 6505 0802

http://www.swiber.com

A World Class Company

In the Offshore Industry

Inventory (4,681) (4,681) -

Other receivables (38,943) (38,942) (1) A

Other assets (18) (18) -

Trade payables 48,527 48,526 1 A

Other payables 61,258 61,258 -

Cash generated from / (used in) operations 15,387 15,387 -

Income taxes paid (2,099) (2,099) -

Interest expense paid (13,167) (11,131) (2,036) B

Cash generated from / (used in) operating activities 121 2,157 (2,036)

Investing activities:

Interest income received 832 832 -

Proceeds on disposal of property, plant and

equipment 19,475 19,475 -

Proceeds on disposal of assets held for sale 34,706 34,706 -

Purchases of property, plant and equipment (224,223) (226,259) (2,036) B

Additions to non-current assets held for sale (33,112) (33,112) -

Minority interest contribution for share capital of

subsidiary 48 48 -

Investment in subsidiary - - -

Investment in associate (156) (156) -

Investment in joint venture (2,274) (2,274) -

Net cash used in investing activities (204,704) (206,740) (2,036)

Financing activities:

Repayment of bank loans (133,426) (133,426) -

Pledged deposits 8,472 8,472 -

Proceeds on issue of bonds 92,282 92,282 -

Proceed on issue of shares - - -

Purchase of treasury shares (2,507) (2,507) -

Share issue expenses - - -

Repayment of obligations under finance leases (721) (721) -

Redemption of bonds (8,331) (8,331) -

New bank loans raised 235,077 235,077 -

Net cash from financing activities 190,846 190,846 -

Net (decrease) / increase in cash and cash

equivalents (13,737) (13,737) -

Cash and cash equivalents at beginning of the year 82,632 82,632 -

Effects of exchange rate changes on the balance of

cash held in foreign currencies

(808) (808) -

Cash and cash equivalents at end of the year 68,087 68,087 -

Swiber Holdings Limited

Co Reg No. 200414721N

12 International Business Park, CyberHub@IBP #04-01 Singapore 609920

Tel: +65 6505 0800 Fax: +65 6505 0802

http://www.swiber.com

A World Class Company

In the Offshore Industry

Notes :

A : Rounding errors

B: Reclassification of capitalised borrowing cost to Interest expense paid instead of Purchases of property, plant and

equipment

BY ORDER OF THE BOARD

Goh Kim Teck

Executive Chairman and CEO

14 April 2009

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_F4FD90BEE59BDAA5482575980019E940/$file/Announcement-Reclassification_FY2008.pdf?openelement

1. THE PROPOSED SALE

1.1 The board of directors of the Swiber Holdings Limited (the "

with its subsidiaries, the "

subsidiary, Swiber Offshore Construction Pte. Ltd. ("

"

Agreement

"

1,407,030 ordinary shares (the "

Holdings Pte. Ltd. ("

1.2 The Sale Shares represent 30% of the issued share capital of OBT.

1.3 As the Sale Shares represent the Group's entire interest in OBT, upon the completion

("

to be the date falling seven days from the Signing Date, the Company will cease to

have an interest in OBT, and OBT will cease to be an associated company of the

Company as defined under the listing manual of the Singapore Exchange Securities

Trading Limited (the "Company" and togetherGroup") is pleased to announce that its wholly-ownedSwiber Offshore"), has today (theSigning Date") entered into a sale and purchase agreement (the "Sale and Purchase") on a willing buyer willing seller basis with Mineral Energy Pte. Ltd. (thePurchaser"), pursuant to which Swiber Offshore agreed to sell to the PurchaserSale Shares") in the issued share capital of OBTOBT").Completion") of the abovementioned sale (the "Proposed Sale") which is scheduledListing Manual").

2. CONSIDERATION

2.1 The consideration (the "

2.2 The Consideration is to be satisfied in cash in the following manner:

(a) a sum of US$2,000,000, payable seven days from the Signing Date;

(b) a sum of US$500,000, payable 30 days from the Signing Date;

(c) a sum of US$500,000, payable 60 days from the Signing Date; and

(c) a sum of US$900,000, payable 90 days from the Signing Date.

2.3 The Consideration of US$3,900,000 is calculated based on the book value of OBT as

disclosed in the latest announced unaudited financial statements of the Company for

the financial year ended 31 December 2008 of approximately US$3,973,940.

2.4 The Proposed Sale is a Non-Discloseable Transaction under Rule 1008 of the Listing

Manual.Consideration") for the Proposed Sale is US$3,900,000.

- 2 -

3. FINANCIAL INFORMATION REGARDING OBT

3.1 Based on the latest announced unaudited financial statements of the Company for the

financial year ended 31 December 2008:

(a) Book Value

The book value of OBT is approximately US$3,973,940.

(b) Net Tangible Asset Value

The net tangible asset value of OBT is approximately US$3,012,317.

6. INTEREST OF DIRECTORS AND CONTROLLING SHAREHOLDERS

None of the Directors or controlling shareholders of the Company has any interest,

direct or indirect, in the Subscription, save for their interests arising by way of their

directorships in the Company and Victorious.

7. DOCUMENTS AVAILABLE FOR INSPECTION

A copy of the Sale and Purchase Agreement may be inspected at the registered office

of the Company at 12 International Business Park, #04-01 Cyberhub @ IBP, Singapore

609920 during normal business hours for a period of three (3) months from the date of

this announcement.

BY ORDER OF THE BOARD

Goh Kim Teck

Executive Chairman and CEO

7 April 2009

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_A7DABD6A31FF96944825759100332845/$file/Announcement-OBT_Divesment.pdf?openelement

 

What do you mean by 'heavy liabilities'? If I'm not mistaken, their 2QFY08 Balance Sheet shows a nett asset of USD215,000,000 (rounded) which consists of S/Holders' Funds of USD213,000,000 and Minority Interest of USD2,000,000.

Maybe you only read 1 side of the Balance Sheet. Cheers!

Ask DBS to buy more !!