Parent buys up US$1.3bn in Chalco assets

Aluminum Corporation of China (Chalco; ACH.NYSE, 601600.SHA, 2600.HKG) plans to sell US$1.3 billion in assets with its parent company being the primary buyer, Bloomberg reported, citing exchange filings. Chalco, China’s largest aluminum maker, will also have the chairman and president take over the duties that previously fell to the CEO, eliminating that position. The sale includes production facilities and is part of a move to “optimize the asset structure, lower the debt-to-asset ratio and improve the debt portfolio of the company,” the filing said. Chalco, which has been struggling with net losses for more than a year, will also sell US$1 billion in perpetual bonds overseas.