Citic Resources Jumps 24% To Near Six-Week High On One-Time Gains
October 20 2011 - 11:08PM
Dow Jones News
Shares of Citic Resources Holdings Ltd. (1205.HK) jumped as much
as 24% to a near six-week high after the unit of Chinese
state-owned Citic Group said it expects to book a one-time gain
from the sale of its stake in Australia's Macarthur Coal
(MCC.AU).
The Hong Kong-listed Chinese energy and base-metal producer said
in a statement it would vote its 16.34% shareholding in favor of an
offer from Peabody Energy Corp. (BTU) and ArcelorMittal (MT) to buy
Australian coking coal miner Macarthur Coal.
Citic Group, which holds a 7.9% stake directly, didn't
immediately return a call for comment.
At 0230, Citic Resources' shares jumped 24% to its intraday high
of HK$1.03, a near six-week peak since it reached an intraday high
of HK$1.07 Sept. 12.
Citic Resources will likely book a one-time gain of about
A$398.4 million (US$406.11 million) in 2011 if the buyers boost the
offer price for each Macarthur share to A$16.25 per from A$16, it
said.
-By Joanne Chiu, Dow Jones Newswires; 852-2802-7002;
joanne.chiu@dowjones.com
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