Oct. 10 (Bloomberg) -- Shandong Aluminium Industry Co., a unit of the world's second-largest alumina producer Aluminum Corp. of China Ltd., said shareholders rejected a proposal to make its non-tradable shares tradable.
The offer to holders of tradable shares of 2.5 shares for every 10 held, more than the 2 for 10 previously proposed, was rejected at a Sept. 29 meeting, Aluminum Corp. said in a statement today.
Listed companies in China have two classes of shares, those which can be traded on an exchange by the public and those which can't. The government is encouraging companies like Aluminum Corp., known as Chalco, to make non-tradable shares tradable to boost private ownership and make management more accountable.
Chalco, which holds 480 million non-tradable shares in Shandong Aluminium, or 71.43 percent of the total, had said Dec. 1 it wanted to buy the Shandong Aluminum shares it didn't own. The share-swap proposal reversed that plan.
Shares of Shangdong Aluminium will resume trading today.
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