+
Asia Cement China owner to take company private in $647 million deal
Cement

Asia Cement China owner to take company private in $647 million deal

The majority owner of Asia Cement (China) Holdings Corp has proposed to privatise the cement manufacturer in a deal worth HK$5.05 billion ($646.6 million), according to statements from the companies on Wednesday. This move comes amidst challenges faced by construction suppliers amid the crisis in China's property sector.

As part of the privatisation offer, Taiwan-listed Asia Cement Corp is extending an offer of HK$3.22 for each share of Asia Cement China that it does not already possess, representing a 3% discount compared to the Hong Kong-listed firm's closing price on May 28.

Trading in Asia Cement China shares was halted in Hong Kong on May 28 pending an announcement on takeovers and mergers after experiencing a substantial surge of up to 47%, marking its largest intraday increase since November 2008. Additionally, on May 27, the shares had rallied by 14%, leading to a market capitalisation of $666 million, significantly lower than its peak of $2.8 billion in July 2019. The Hong Kong-listed firm has applied to resume trading on Thursday.

Currently, Asia Cement Corp holds a 67.73% stake in the Hong Kong-listed unit, which reported a first-quarter loss of approximately $17.9 million in April.

China's property market is grappling with high levels of debt, impacting construction suppliers across the country. In response, Beijing has introduced stimulus measures to address the housing market's decline. Asia Cement China has faced challenges in recent years, including a downturn in its revenue and profit, attributed to factors such as the property market crisis, the Covid-19 pandemic, rising interest rates, and intensified competition.

Asia Cement Corp, listed in Taiwan, is owned by Far Eastern New Century Corp, a conglomerate involved in various industries ranging from shipping to telecommunications. (Source: ET)

The majority owner of Asia Cement (China) Holdings Corp has proposed to privatise the cement manufacturer in a deal worth HK$5.05 billion ($646.6 million), according to statements from the companies on Wednesday. This move comes amidst challenges faced by construction suppliers amid the crisis in China's property sector. As part of the privatisation offer, Taiwan-listed Asia Cement Corp is extending an offer of HK$3.22 for each share of Asia Cement China that it does not already possess, representing a 3% discount compared to the Hong Kong-listed firm's closing price on May 28. Trading in Asia Cement China shares was halted in Hong Kong on May 28 pending an announcement on takeovers and mergers after experiencing a substantial surge of up to 47%, marking its largest intraday increase since November 2008. Additionally, on May 27, the shares had rallied by 14%, leading to a market capitalisation of $666 million, significantly lower than its peak of $2.8 billion in July 2019. The Hong Kong-listed firm has applied to resume trading on Thursday. Currently, Asia Cement Corp holds a 67.73% stake in the Hong Kong-listed unit, which reported a first-quarter loss of approximately $17.9 million in April. China's property market is grappling with high levels of debt, impacting construction suppliers across the country. In response, Beijing has introduced stimulus measures to address the housing market's decline. Asia Cement China has faced challenges in recent years, including a downturn in its revenue and profit, attributed to factors such as the property market crisis, the Covid-19 pandemic, rising interest rates, and intensified competition. Asia Cement Corp, listed in Taiwan, is owned by Far Eastern New Century Corp, a conglomerate involved in various industries ranging from shipping to telecommunications. (Source: ET)

Next Story
Infrastructure Energy

Shree Cement Commissions Rs 160 Million Solar Plant in Roorkee

Shree Cement Ltd, a leading name in India’s cement industry, has commissioned a 6.0 MWp solar power plant at its Roorkee unit in Uttarakhand. Located next to its existing facility, the new installation represents a significant stride in the company’s commitment to expanding renewable energy use and reducing its carbon emissions.With this addition, the Roorkee unit’s solar capacity has increased from 1.0 MWp to 7.0 MWp—a sevenfold jump. Across all its operations, Shree Cement now has a total installed solar capacity of 293.5 MWp, reinforcing its dedication to environmentally responsible..

Next Story
Infrastructure Energy

MP Secures Rs 30 Billion Solar Deal in Dubai Visit

Madhya Pradesh Chief Minister Mohan Yadav’s visit to Dubai has secured a solar power investment deal worth Rs 30 billion, marking a major boost to the state’s renewable energy ambitions. This agreement is part of a wider global outreach initiative aimed at attracting international investors to Madhya Pradesh.The investment will fund large-scale solar infrastructure projects, enhancing the state’s capacity in clean energy and supporting its vision to become a green energy hub in central India. In addition to cutting carbon emissions, the project is expected to foster sustainable developme..

Next Story
Real Estate

Suraj Estate Launches Rs 1.2 Billion Project in Prabhadevi

Suraj Estate Developers has launched a new luxury residential project in Mumbai’s upmarket Prabhadevi area, with a projected gross development value (GDV) of Rs 1.2 billion, according to a stock exchange filing.The project, named Suraj Aureva, is designed as a 21-storey residential tower featuring compact premium residences. It includes 1, 2, and 3 BHK apartments, with prices starting from Rs 24.7 million.The developer stated that the project addresses rising demand for high-end yet space-efficient homes in Prabhadevi, a locality where such inventory remains limited.The Mumbai-based firm als..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?