Cement firm Jilin Yatai Group Co Ltd said it received approval from the Ministry of Commerce for the sale of a strategic stake to Ireland’s CRH Plc.
In December 2007, the company agreed to set up a wholly-owned unit, Jilin Yatai Group Cement Investment Co Ltd, with registered capital of 2.743 bln yuan. It intends to inject its entire cement production assets, including stakes in all cement units, into the new entity.
The company also agreed to sell a 26 per cent stake in the new entity to CRH for CNY2.13bn.
CRH has an option to increase its holding in the new entity to 49 per cent for about CNY2bn within 4-6 years after the deal. In July, the deal was approved approved by the National Development and Reform Commission, China’s top economic planner.