Conch and Prosperity Cement buy into Anhui Chaodong, China

Conch and Prosperity Cement buy into Anhui Chaodong, China
05 June 2006

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.
Published under Cement News