Taiwan Cement Corp said its Hong Kong-listed subsidiary, TCC International Holdings Ltd, intends to buy Chia Hsin Cement Corp’s Hong Kong-listed unit Chia Hsin Cement Greater China Holding Corp, confirming speculation reported earlier this week when both companies suspended trading of their shares.
Taiwan Cement told the stock exchange here that TCC International plans to acquire Chia Hsin Cement Greater China shares through a voluntary general offer, with one share in TCC International to be exchanged for 2.2 shares in Chia Hsin Cement Greater China.
The acquisition is aimed at enhancing its business scale and strengthening its industry position, the company added. Separately, Chia Hsin Cement Corp said in a filing with the Taiwan exchange that its two units will dispose of all their holdings in Chia Hsin Cement Greater China to TCC International through a share swap. Chia Hsin Cement Corp’s 69.73-per cent owned Chia Hsin Pacific Ltd owns 71.22 per cent of the Hong Kong-listed Chia Hsin Cement Greater China.
Another unit International Chia Hsin Corp owns 0.92 per cent of the Hong Kong-listed firm. "With the continuing expansion and consolidation of (the mainland China) government-owned cement businesses, and also with the increasing investment by the top five world cement conglomerates on (the mainland), we can expect more mergers and acquisitions to take place," Chia Hsin Cement Corp said. "With our resources and expertise combined, we can aggressively respond to this development trend and become one of the leading cement producers in the eastern and southern parts" of mainland China, it added.