Sumitomo secures full CBNC ownership
In a stock exchange filing on Monday, NAC confirmed the sale of its entire 15.625 percent stake in CBNC to Sumitomo which, even before the transaction, already held an 84.38 percent majority stake in the nickel processing company
One of the Philippines’ largest nickel ore producers, Nickel Asia Corp. has sold its remaining 15.625 percent share in Coral Bay Nickel Corp. to Japan’s Sumitomo Metal Mining Co. which had already held an 84.63 percent stake in the company.
photograph courtesy of Sumitomo Metal Mining Co., Ltd.
Japan’s Sumitomo Metal Mining Co. Ltd. has gained full ownership of Coral Bay Nickel Corp. (CBNC) after acquiring the remaining shares held by Nickel Asia Corp. (NAC).
In a stock exchange filing on Monday, NAC confirmed that it signed a Special Purchase Agreement with Sumitomo for the sale of its entire 15.625 percent stake in CBNC.
Before the transaction, Sumitomo already held an 84.38 percent majority stake in the nickel processing company.
The divestment comes as NAC seeks to address financial constraints amid market volatility and shift its strategic focus.
Market volatility
Andre Dy, NAC vice president for Treasury and Investor Relations, previously said that the company’s decision to divest was prompted by the volatility in the nickel market.
Dy noted that CBNC’s financial performance had been negatively impacted in recent years by rising operational costs and declining nickel prices.
CBNC, which has been operational since 2005, produces over 20,000 tonnes of nickel and 2,000 tonnes of cobalt annually using a processing plant near the Rio Tuba mine.