BBMG to acquire Taihang Cement via share swap

BBMG to acquire Taihang Cement via share swap
Published: 07 June 2010

BBMG plans to acquire Hebei Taihang Cement through a share swap at a ratio of 1.2:1, reports China Securities Journal, citing filings by both companies.

The swap prices of BBMG and Taihang Cement were fixed at CNY9/share and CNY8/share respectively.

BBMG currently holds a 30 per cent stake in Hebei Taihang Cement.

Upon the completion of the transaction, all the shares of Taihang Cement will be cancelled and BBMG will apply to issue A-shares in addition to its current listing in Hong Kong.

BBMG has an annual cement production capacity of 16.33Mt at the end of 2009.

Separately, BBMG also said that it has agreed to spend CNY623.7m for a 66.12% stake in Beijing Cement Plant Co.