BUSINESS Copper trader Maike to sell assets: report

BUSINESS

Copper trader Maike to sell assets: report

Shenzhen Daily

08:11, September 27, 2022


MAIKE Metals International, one of China’s biggest copper traders, is selling assets and studying a broader restructuring pattern as it battles to survive a liquidity crisis, the Financial Times reported yesterday, citing He Jinbi, founder and chairman of Maike Metals.

The company was discussing an investment with State-owned groups in the northwestern city of Xi’an, the Financial Times report quoted He as saying. But the government has told him to scale down the business first.

Maike, which handles a quarter of the country’s refined copper imports, is an important intermediary between Chinese metal consumers and global merchants such as Glencore and Trafigura.

Market participants say Maike will struggle to maintain its dominant role in the Chinese copper market even if it can secure support from the banks and the government, according to the report. But He was philosophical about the company’s future.

“We’re actively selling assets and equities to replenish our liquidity and reduce debt,” He said to the newspaper, adding that the final plan could involve “shareholding restructuring, asset restructuring and debt restructuring.

The company was “breaking arms to survive.”

Last month, Reuters reported that Maike was seeking help from the government and financial institutions to alleviate liquidity issues.

He founded Maike nearly three decades ago trading copper wires, and he is one of the most well-known names in China’s copper industry. Maike has historically been one of the biggest traders of copper in China since growing rapidly during the commodities supercycle of the 2000s. It has remained a major player even with recent competition from newer State-backed rivals. (SD-Agencies)

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