THE board of Global Ferronickel Holdings, Inc. (FNI) has approved the acquisition of a 20% interest in China’s Guangdong Century Tsingshan Nickel Industry Co., Ltd. (GCTN).
In a disclosure to the stock exchange on Monday, the company said its board considered the proposal of the management to obtain interest in GCTN as part of the effort to “enhance synergy” between FNI as an ore supplier and GCTN as a value-added processor.
Further, the disclosure said the acquisition seeks to offer consistent and reliable trade transactions between the parties and provide support for FNI’s diversification projects.
However, FNI did not provide details or figures on its planned acquisition in the stock exchange disclosure.
“Due disclosure will be made once terms and conditions are finalized and definitive agreements are executed,” the company said.
“[The board approved] the authority of the Audit, Risk and Related Party Transaction Committee to ensure that the terms and conditions of the acquisition comply with the requirements applicable to material related party transactions and that the rights of the shareholders and other stakeholders are protected,” it added.
According to its website, GCTN is a firm based in Yangjiang high-tech district in Guangdong, China. It engages in the business of producing high-grade nickel alloy and has more than 900 personnel.
In a previous stock market disclosure, FNI announced that it was targeting a shipment volume of 6 million wet metric tons of nickel ore for 2021. The company also allotted $5 million as capital expenditure for the year.
It added that Platinum Group Metals Corp., the company’s Surigao del Norte-based operating arm, started its shipment of nickel ore to its customers in China on March 29.
On Monday, shares of FNI at the stock exchange went up 3.6% or nine centavos to close at P2.59 per share. — Revin Mikhael D. Ochave