China Jiangxi Wannianqing Cement to issue up to 70m A-shares to parent

China Jiangxi Wannianqing Cement to issue up to 70m A-shares to parent
Published: 21 March 2007

Wannianqing Cement Co Ltd said it plans to issue up to 70m additional A-shares to its parent, Jiangxi Cement Co Ltd, and other institutional investors via private placement. The parent will inject its mining rights in the Eling limestone mine into the listed company in exchange for acquiring at least 15m new shares to be issued, according to a statement filed to the Shanghai Stock Exchange. The other investors will buy up to 55m new shares with cash, the company said. The company said it has not set a final price for the new shares to be issued. All proceeds from the share issue, estimated to be about CNY300m, will be invested in updating production technology and constructing a new power generation facility, with a total investment of CNY228m, and supplement working capital, the company said.