Henan Tongli to acquire 100% stake in Yimei Group Cement

Henan Tongli to acquire 100% stake in Yimei Group Cement
Published: 23 September 2011

Henan Tongli Cement Co., Ltd. has agreed to acquire a 100% stake in Yimei Group Cement from Yima Coal Industry (Group) Co, Ltd and assume CNY750m (US$117.93m) of its debt. All the companies are based in China.

Henan Tongli Cement is engaged in the manufacturing and distribution of cement, while Yima Coal Industry is engaged in coal mining and production.

Tongli Cement will offer CNY25m (US$3.93m) to Yi Ma Coal Industry Group as a performance guarantee within 10 days after signing an acquisition agreement.

Tongli Cement will inject CNY345m (US$54.24m), CNY148m (US$23.27m) and CNY111m (US$17.45m) into Yimei Cement, and Yimei Cement will use the funds to repay debts owed to Yi Ma Coal Industry Group.