Anhui Chaodong Cement Group, has signed an agreement to sell a 40 per cent stake in the listed company to Wealcity (Prosperity minerals) and a 19.69 per cent stake to Anhui Conch Cement Co Ltd. According to a statement filed to Shanghai Stock Exchange, Anhui Chaodong Cement Group has therefore sold its entire 59.69 per cent stake in Anhui Chaodong Cement Co, held in the form of non-tradable state shares. The company said the total value of the deal was Yuan 284.14m (~US$35m) with Anhui Conch Cement to pay Yuan 93.74m (~US$12m).
Commenting on the acquisition, David Wong, chairman and chief executive of Prosperity, said: ’I believe Prosperity will be able to reap significant rewards from a business that is focused on taking advantage of the increasing demand for cement in the region and China as a whole.’
Prosperity’s Chaodong shares will have full voting rights and entitlements to dividends but will be non-tradeable. There are plans for a share restructuring at Chaodong in the near future where Prosperity will exchange its 40 per cent holding of non-tradeable shares for fully tradeable shares. If the exchange takes place, Prosperity’s holding in Chaodong will be diluted.