Sichuan Golden Summit (Group) Joint-Stock, a cement manufacturer in China, said in an announcement that it plans to buy out a small peer in Renshou county named the People’s Special Cement Company in Sichuan province.
Sichuan Golden Summit has entered into agreements with three shareholders of the target, including two companies in Fuyang city and Zhejiang province and a natural person, to purchase a 50.84 per cent, 33.36 per cent and 15.80 per cent stake from them at CNY 127.20m, CNY 83.40m and CNY 39.50m respectively. The Shanghai-traded cement producer needs to pay CNY 250.10m in total for the deal, according to the announcement.
So far, the target company has a designed production capacity of 1.3Mt. Executives of Sichuan Golden Summit aired that the purchase will help the company expand cement sales and market share.
In addition, the company disclosed that one of its subsidiaries invests CNY 490m in building a new dry-process cement production line with a daily production of 4,500t of cement clinker.