Huaxin Cement reported on Sunday it had raised 2.03 billion yuan (US$282m) by selling new shares to Holcim lifting the Swiss firm’s stake in it to 39.88 per cent from 26.11 per cent.
Huaxin said it placed 75.2 million local currency A shares with Holcim at 26.95 yuan per share, a 26 per cent discount to the stock’s last market close of 36.23 yuan. Holcim’s current stake in Huaxin is in the form of foreign currency B shares. The Chinese company said it would spend money raised from the share sale on projects to expand its annual production capacity by 9.5Mt of cement and 5.3Mt of clinker. As of September 2007, China Huaxin reportedly had a cement production capacity of 30.7Mt
Holcim said last month that it had won approval for the deal from the China Securities Regulatory Commission after the Swiss firm agreed with Chinese authorities not to raise its stake to a majority position. Reuters