Yue Da Holdings, a toll-road operator evolving into a metals producer, is considering placing new shares to finance its latest acquisition, an iron and zinc mine in Yunnan province, said executive director Dong Liyong.
Last week, Yue Da said it had agreed to pay 250 million yuan for a mine in Tengchong county, which has a reserve of 10 million to 12 million tonnes of iron and zinc ores.
"HK$120 million to HK$200 million of the consideration will be paid through debt or equity financing, but placing new shares will be the first priority," Mr Dong said yesterday. He added that profit from the metal mining business will outstrip toll roads this year.
The company plans to buy more mining businesses and has a preferential right to acquire its parent's coal mines in Shaanxi and Shanxi provinces.
Yue Da's stock has risen 17.6 per cent since it announced the acquisition on September 26, closing at HK$4.21 yesterday.