BBMG to Issue A-shares, Acquiring Taihang Cement

BBMG to Issue A-shares, Acquiring Taihang Cement
Published: 01 February 2011

BBMG Corporation on January 28, 2011 won the approval from the China Securities Regulatory Commission on an initial public offering (IPO) on the Chinese A-share market and the acquisition of Hebei Taihang Cement Co., Ltd via share swap.

According to the prospectus, the Hong Kong-listed company intends to issue 410 million A-shares via the IPO. All the raised capital from the IPO will be used for the acquisition of the Shanghai-listed company via share swap. After the share swap, Taihang Cement will withdraw from the A-share market. By January 28, 2011, the A-share stock closed at CNY 13.79 a share, much higher than the cash option price of CNY 10.65 a share.

In the period from 2007 to 2009, total assets, net assets, operating revenue, and net profits of the Beijing-based company witnessed an average annual compound growth of 37.9%, 101.1%, 23.5%, and 71% respectively, maintain a rising trend. Net profits attributable to shareholders arrived at CNY 1.887 billion and CNY 1.014 billion in 2009 and the first six months of 2010.