Asia Cement China owner proposes $647M deal to privatise company
ECONOMY & POLICY

Asia Cement China owner proposes $647M deal to privatise company

Construction suppliers are still struggling with China's property industry, which is severely affected by the crisis. As a result, the majority owner of Asia Cement (China) Holdings Corp. has proposed to take the cement producer private, valuing it at $646.66 million, according to the businesses. As part of the deal, the Hong Kong-based company's most recent closing on May 28 is being discounted by 3% to HK$3.22 for each Asia Cement China share that Taiwan-listed Asia Cement Corp. does not currently hold. After Asia Cement China's shares increased by as much as 47% their largest intraday increase since November 2008?trading in the company's shares was halted in Hong Kong on May 28 in anticipation of an announcement on takeovers and mergers.

Additionally, on May 27, shares increased by 14%, bringing the company's market capitalization to $666 million. However, this is still far less than its high of $2.8 billion set in July 2019. The Hong Kong-listed company has requested permission from the stock market to start trading again on Thursday. Currently holding 67.73% of the Hong Kong-listed company, Asia Cement Corp. reported a first-quarter loss of around $17.9 million in April. China is struggling with a heavily indebted real estate market, which has impacted domestic construction suppliers and compelled Beijing to declare stimulus plans in an attempt to halt the housing sector's downturn.

Asia Cement China's top and bottom lines have declined in recent years as a result of a number of issues, including the COVID-19 outbreak, the housing market crisis, increased borrowing costs, and intense competition. Listed in Taiwan The shipping-to-telecom giant Far Eastern New Century Corp. is the owner of Asia Cement Corp. 

Construction suppliers are still struggling with China's property industry, which is severely affected by the crisis. As a result, the majority owner of Asia Cement (China) Holdings Corp. has proposed to take the cement producer private, valuing it at $646.66 million, according to the businesses. As part of the deal, the Hong Kong-based company's most recent closing on May 28 is being discounted by 3% to HK$3.22 for each Asia Cement China share that Taiwan-listed Asia Cement Corp. does not currently hold. After Asia Cement China's shares increased by as much as 47% their largest intraday increase since November 2008?trading in the company's shares was halted in Hong Kong on May 28 in anticipation of an announcement on takeovers and mergers.Additionally, on May 27, shares increased by 14%, bringing the company's market capitalization to $666 million. However, this is still far less than its high of $2.8 billion set in July 2019. The Hong Kong-listed company has requested permission from the stock market to start trading again on Thursday. Currently holding 67.73% of the Hong Kong-listed company, Asia Cement Corp. reported a first-quarter loss of around $17.9 million in April. China is struggling with a heavily indebted real estate market, which has impacted domestic construction suppliers and compelled Beijing to declare stimulus plans in an attempt to halt the housing sector's downturn.Asia Cement China's top and bottom lines have declined in recent years as a result of a number of issues, including the COVID-19 outbreak, the housing market crisis, increased borrowing costs, and intense competition. Listed in Taiwan The shipping-to-telecom giant Far Eastern New Century Corp. is the owner of Asia Cement Corp. 

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