Chia Hsin Cement Greater China Holding Corp said it has agreed to buy from its parent, Chia Hsin Pacific Ltd, an 80 per cent stake in a cement company in China for US$43m.
The company said in a statement it will issue US$32.37m worth of shares to pay for the stake in Jiangsu Union Cement Co and will pay the rest in cash.
The payment will involve the issue of US$263.5m company shares, it added.
With the stake purchase, the company’s annual cement production capacity will increase by 17 per cent and its clinker production by 45.5 per cent.
The company said it believes the acquisition will enhance the asset base of the group and boost its share of the cement market in China.