Cimpor restructures Chinese ops, takes 60% stake in new company

Cimpor restructures Chinese ops, takes 60% stake in new company
31 May 2007

Cimpor has said it plans to restructure its industrial holdings in China after acquiring 60 pct of the Shandong Liuyuan New Type Cement Development Co, Ltd for about EUR2m though its 80 per cent-owned Cimpor Chengtong unit.  
In a statement, Cimpor said that the acquisition and subsequent reorganisation of its stakes in China will boost its cement production with own clinker capacity to 28Mta and allow it to extract more value from China’s high growth potential in cement.  
Following the acquisition, Cimpor plans to subscribe cash to an increase in the share capital at Cimpor Chengtong to HK$245.3m from its current HK$10,000 in cash, in proportion to its 80 per cent stake in the company. 
Its partner in the business, China Chengtong Cement Group plans to subscribe to the capital increase by committing its Sea-Land Mining unit to Cimpor Chentong.  
Sea-Land Mining’s only asset is a 71 per cent stake in a cement grinding mill near Shanghai.  
When the acquisitions and capital hike are complete, Cimpor said it then plans to transfer its stake in Cimpor Chentong to a new company based in Macau called C+PA - Cimentos e Produtos Associados SA.  
Cimpor Inversiones will hold 50 per cent of the new company and control its management, while two unnamed Chinese shareholders will have 25 per cent each, the company said.
Published under Cement News