China National Materials Co Ltd (Sinoma), the world’s largest provider of cement-producing equipment, plans to spend RMB 1bn in purchasing new shares of Shenzhen-listed Xinjiang Tianshan Cement Co Ltdsources reported.
Sinoma is expected to raise its shareholding in Xinjiang Tianshan Cement to 44.36% from the current 36.28%. Xinjiang Tianshan Cement said in a statement filed with the Shenzhen Stock Exchange yesterday that it will issue up to 200 million shares at an average price not less than RMB 13.26 apiece to up to 10 investors.
The issuance plan has obtained approval from China Securities Regulatory Commission (CSRC). The RMB 1.5bn in proceeds will be used to finance Xinjiang Tianshan Cement’s 2500tpd dry cement clinker production lines, replenish working capital, and repay bank loans.