China National Materials Co Ltd (Sinoma) is increasing its shareholding in Gansu Qilianshan Cement Group Co Ltd to further expand capacity, the cement equipment and engineering services provider said in a statement on its website yesterday.
Sinoma plans to buy a 51 percent stake in Gansu Qilianshan Holdings Co, which is the largest shareholder of the Shanghai-listed Qilianshan Cement with a 12.78 per cent stake, for CNY333m.
The deal is by far the largest in China’s cement industry this year, said sources.
Prior to this, Sinoma had acquired an 11.58 per cent stake in Qilianshan Cement in June and was the second largest shareholder in the company.
Sinoma plans to acquire 35.67 percent stake in Qilianshan Holdings from the Gansu provincial government for CNY232.77m. It will also pay Qilianshan Holdings additional capital of CNY100m, representing approximately 15.33 per cent of its enlarged capital.