Macquarie to buy a 20% stake in Chinese metals trader

[HONG KONG] China's metals trading firm Jinchuanmaike Metal Resources Co Ltd will sell a 20 per cent stake to Australia's Macquarie Bank for about US$50 million through an issue of new shares, two sources at the Chinese company said on Monday.

"(We) will increase capital and expand shares," one of the sources at Jinchuanmaike said. He said Macquarie signed a framework agreement to buy the shares on Saturday in Shanghai.

Macquarie's spokeswoman in Hong Kong declined to comment.

Jinchuanmaike was set up in 2013. It is currently 70 per cent owned by Jinchuan Group, the top nickel producer and third-largest copper smelter by capacity in China, and 30 per cent by Maike Metals Group, a base metals trading company.

Jinchuanmaike will focus on trading base metals, precious metals and rare metals in the Chinese and international markets, the sources said.

REUTERS