Huaxin Cement to sell shares at higher price to Holchin

Huaxin Cement to sell shares at higher price to Holchin
Published: 05 December 2007

Huaxin Cement Co., Ltd, a listed cement producer based in Huangshi City, Hubei Province, Central China, determined to raise the share selling price to Holchin B.V., an unit wholly owned by Holcim Ltd., which is one of the largest cement manufacturers around the world.

On March 7, 2006, Huaxin Cement made the preliminary decision to introduce Holchin as its strategic investor and sell shares no less than 120% of the average prices in the past 20 trading days since the board announced the news. Its stock closed at CNY 5.82 on that day.

On December 2, 2007, the Chinese company announced that it would sell no more than 160 million common shares, which are denominated in the Chinese yuan, to Holchin but at a price 90% of the 20-trading-day average before this announcement. Its latest close on November 29, 2007 was CNY 30.44.
Huaxin Cement notes the deal is still under regulatory appraisement and approval. In fact, regulators had thought the previous agreed price was too low from the current market price, so suggested the company to adjust the selling price.