Not vested.
DJ MARKET TALK: Molybdenum Down; LHT Stake Sale Impact Small-Citi
1218 [Dow Jones] China Molybdenum (3993.HK) down 0.9% at HK$6.45 vs HSI down 1.4%, not reacting much to news company plans to sell 50% equity interest in Luoyang High Tech to Molymet Corp.
"Due to the target's low contribution to earnings and lower margins versus China Moly's mining business, we believe the transaction would not have a substantial impact on China Moly's business and earnings," says Citigroup.
Expects introduction of Molymet would help improve technology, management and marketing, as China-based Molymet is one of biggest moly processing companies in the world; notes, while maximum final appraisal value of Luoyang High Tech cannot exceed CNY500 million, meaning maximum purchase price for 50% of shares cannot exceed CNY250 million, with Moly planning to apply proceeds as general working capital.
Keeps at Hold, target at HK$6.80.
Source: Dow Jones Newswire