Goldview Development is selling most of its stake in Dongwu Cement International Ltd, which is based in Wujiang City, Suzhou Prefecture, Jiangsu province, China. Following the divestment, it is expected that Port & Shipping Group (HK) Investment and Suzhou Fenyuan Capital Management will be the cement company’s largest shareholders, with stakes of 28 and nine per cent, respectively. Port & Shipping Group is supported by Suzhou Municipal SASAC and will nominate four board members while Suzhou Fenyuan will have a board seat. As a result, Dongwu Cement’s strategy and leadership is expected to be significantly influenced by government-backed stakeholders.
The agreement is subject to regulatory approval and depends on the company selling off its rare earths business.
Dongwu Cement’s shares were down nearly six per cent due to the ensuing uncertainty regarding the company’s future profitability and strategy.
