China Resources inks loan deal

China Resources inks loan deal
Published: 23 December 2010

China Resources Cement Holdings Ltd, the largest cement producer in South China by output, said it has signed a fixed-term loan agreement worth HK$500m (US$64m) with a bank, sources reported. 

In a statement filed with the Hong Kong Stock Exchange, the cement producer said that the loan deal has a term of four years. 

China Resources Cement did not disclose the name of the bank and other details in the statement.  

Pursuant to the agreement, the bank has the right to terminate the agreement and request China Resources Cement to pay back the loan and interest incurred during the term, if parent China Resources Co Ltd’s shareholdings in the cement maker are less than 50% and it is no longer the biggest shareholder.

China Resources currently holds a 73.34% stake in China Resources Cement. 

Earlier this month, the company announced that it will acquire the clinker, cement and concrete business in Guangzhou and Hong Kong for a total consideration of HK$1.24bn from Yue Xiu Enterprises (Holdings) Ltd and its subsidiary CCCI.