Tangshan Jidong Cement has won approval from the China Securities Regulatory Commission for its private placement, reports 163.com, citing a company filing.
Jidong Cement intends to raise CNY1.914bn through the issue of 134m shares to Diamondrock Investment at CNY14.21 per share. Funds raised will be used to supplement Jidong Cement’s working capital.
After the share acquisition, Diamondrock Investment will hold a 10 per cent stake in Jidong Cement.
Diamondrock Investment is a wholly-owned subsidiary of Direct Manage Investment, which is registered in the British Virgin Islands and is 42.07% owned by New Horizon Capital, a private equity firm focused on the Chinese market.
China International Capital Corporation (CICC) forecasts a 39.8%t YoY increase in Jidong Cement’s cement and clinker sales to 66Mt this year, with the selling prices of its products increasing by an average of 8%.