Sinoma to buy RMB501m shr of Qilianshan Cement

Byswb

Updated Tue, 16 Jun 2009 00:00:00 GMT

China National Materials (Sinoma) has agreed to subscribe for 55 million A shares of Qilianshan Cement at a total of RMB501.05 million, becoming the second largest shareholder of Qilianshan Cement.

Qilianshan Cement proposed to issue 79 million additional A shares at the subscription price of RMB9.11 per share by way of private placement to designated institutional investors, Sinoma said in a statement.

Upon completion of the share subscription agreement, Sinoma will hold approximately 11.58% shareholding interest in Qilianshan Cement.

Sinoma is of the view that the participation in the A-share issue by way of the share subscription agreement is a major step for it to reach its strategic goal of being the largest cement production enterprise in northern China and will further increase the overall profitability of the group.