Metallurgical Corporation of China plunges 20pc on loss-making asset sale plan to controlling shareholder

Shares of Metallurgical Corporation of China (1618) plunged 20 percent after disclosing plans to sell non-core assets to its controlling shareholder, China Minmetals, at a loss. 

The state-owned company has agreed to sell a 100 percent stake in MCC Real Estate and assign the debts to Minmetals Land (0230), according to a filing on Monday. 

MCC and its subsidiary China Huaye also plan to sell 100 percent stakes in Non-ferrous Engineering, MCC Tongsin Resources MCC Ramu, and MCC Duddar, as well as 67.02 percent equity interest in MCC-JJJ Mining to China Minmetals. 

The total consideration is 60.7 billion yuan (HK$66.8 billion) and the company expects it to book a loss of 2.52 billion yuan from the disposals. 

The deal is subject to approval by regulators and independent shareholders.