Anhui Conch Cement Co. Ltd. has announced that following a meeting of its board of directors, the company has asked for its shareholders’ approval to acquire three subsidiaries from its parent Anhui Conch Holdings Co. Ltd. (Conch Holdings).
Under the proposal, Anhui Conch will acquire 100% of Anhui Ningchang Packaging Material Co. Ltd., 75% of Wuhu Conch Plastic Manufacturing Co. Ltd., and 100% of Shanghai Conch Construction Material International Trading Co. Ltd.
The three companies together are estimated to have a worth of RMB 302.64 million, according to an asset valuation conducted by Guyou Dazheng Asset Valuation Co. Ltd., as of May 31, 2006.
As consideration for the equity interests in the three companies, Anhui Conch will be issuing to Conch Holdings 22.76 million A-shares at the price of RMB 13.30 per share. The price of the shares was calculated on a 20-day average of Anhui Conch’s closing prices since the company suspended trading on Jul. 12.
The shares to be allotted and issued by Anhui Conch to its parent will be subject to a lock-up period of three years.