Tangshan Jidong to buy stake in Shaanxi QinLing Cement
Tangshan Jidong Cement Co Ltd today announced that it has received approval from the state-owned Assets Supervision and Administration Commission to purchase 62.66 million shares from Shaanxi QinLing Cement (Group) Co for CNY334m (US$48.9m).
The Shenzhen-listed purchaser, which had 60 million shares or a 9.08% stake in the target firm as of May 24, will become the largest shareholder of QinLing Cement with 122.66 million shares or an 18.56% stake to have a leading position in the cement market of Shaanxi Province. In 2005, Tangshan Jidong Cement planned to make acquisition to Shaanxi QinLing Cement but failed due to high offer price.
In 2009, Tangshan Jidong Cement sold 29.56Mt of cement and had an output capacity of 60Mt at the end of last year. Published under Cement News
