(Last Updated On: October 3, 2022)
Philippine based Global Ferronickel (FNI) has announced yesterday that its acquiring more shares from GHGC Holidings, a China based company. GHGC is a British Virgin Islands holding company owning 90% shareholding in Guangdong Century Tsinghan Nickel Industry Co., Limited.
The strategy will help FNI improve its Nickel Mining business and it is diversifying its investments towards high-growth firms and industries. It can provide operational synergies and improve cost efficiencies. FNI will acquire 22% of GHGC holdings through its subsidiary Gu Zhifang. FNI is buying its shares worth USD 75 Million a total of 10,000 shares
Acquiring 22.22% shareholding in GHGC gives FNI 20% indirect ownership in Guangdong Century. It provides experience and capabilities in value-added processing of nickel ore.
Guangdong Century is a nickel alloy enterprise in China that operates in a 33-hectare area with more than 600 employees.
Guangdong Century plant uses rotary kiln technology. The rotary kiln can feed up to 4 furnaces. Previously, the rotary kiln feeding at two furnaces produced only around 20,000 tons of pure nickel. After technical upgrade, the rotary kiln, now feeding at three furnaces, is estimated to produce about 28,000 tons of pure nickel.
Guangdong Century’s wholly owned subsidiary is Yangjiang Zichen Port and Logistic Limited Company, located near Yangjiang Harbour, Hailing Cove area.
Shares of FNI drop by -4.31% yesterday reflecting the overall market bearish sentiment.