Prosperity Minerals Holdings Ltd said Monday that the share restructuring at Anhui Chaodong Cement Co. Limited has now received all the necessary regulatory approvals. This means that Prosperity’s shareholding in Chaodong, a company listed on the Shanghai Stock Exchange of the PRC, is fully tradeable.
The Board confirms that on 1st June 2007 China Securities Depository & Clearing Co., Ltd. issued a share certificate to confirm Prosperity’s holding of 80 million Chaodong shares. On Jul. 4, 2007 the Ministry of Commerce approved the Share Reform to convert Prosperity’s shares into tradable. On Jul. 18, 2007 the tradeable shares resumed trading on the Shanghai Stock Exchange.
Following the Share Reform, Chaodong has 242,000,000 tradeable shares in issue. Prosperity now holds 80 million tradeable Chaodong shares representing 33.06 per cent. of Chaodong’s issued share capital. The acquisition cost was RMB 2.48 (15.5 pence) per share and the shares after the Share Reform closed at RMB 7.67 (47.9 pence) on Jul. 20, 2007.
Under the terms of the original share purchase agreement, Prosperity has undertaken not to sell the 80 million Chaodong shares it holds for a period of three years from Jul. 16, 2007, being the date the Share Reform of Chaodong was completed.