Allied Cement will become a holding company of the cement Group, the subject of the proposed spin-off, which comprises certain existing subsidiaries of Tian An China and is engaged principally in the manufacture, sale and trading of cement and clinker in Shanghaiand Shandong province.

Tian An China intends to maintain not more than about 75% equity interest in Allied Cement. The net cash proceeds from the spin-off will provide Allied Cement additional funding to repay shareholder’s loan and working capital for its operation and trading activities.
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