Tangshan Jidong Cement to buy stake in Shaanxi QinLing Cement

Byyyp

Updated Tue, 25 May 2010 00:00:00 GMT

Tangshan Jidong Cement Co Ltd<000401> today announced that it has received approval from the State-owned Assets Supervision and Administration Commission to purchase 62.66 million shares from Shaanxi QinLing Cement (Group) Co Ltd<600217> for RMB 334 million.

The Shenzhen-listed purchaser, which had 60 million shares or a 9.08% stake in the target firm as of May 24, will become the largest shareholder of QinLing Cement with 122.66 million shares or an 18.56% stake to have a leading position in the cement market of Shaanxi Province.

In 2005, Tangshan Jidong Cement planned to make acquisition to Shaanxi QinLing Cement but failed due to high offer price. At that time, several cement producers and sellers expanded in Shaanxi market, such as Anhui Conch Cement Co Ltd<600585><0914> and the cement units of China National Materials Co Ltd<1893>.

In 2009, Tangshan Jidong Cement sold 29.56 million tons of cement and had an output capacity of 60 million tons at the end of last year.