Wednesday, February 16, 2011

CHINA: Jiangxi Wannianqing Cement To Raise 692M Yuan For Asset Acquistion

- Jiangxi Wannianqing Cement  intends to raise 692 million yuan by issuing 65 million shares at 10.64 yuan per share, reports 163.com, citing a company filing. Of the total money raised, 500 million yuan will be used to supplement its working capital and acquire a 50-percent stake in Jinxi Cement.

The remaining funds will go to a thermal power project and the construction of two cement mixers.

Since Nanfang Wannianqing Cement, Jiangxi Wannianqing Cement’s subsidiary, also holds a 50-percent stake in Jinxi Cement, Jiangxi Wannianqing will be entitled to 75 percent of Jinxi Cement’s net profit after the acquisition.

Jinxi Cement posted a net profit of 29.97 million yuan in 2009 and 25.81 million yuan for the first nine months of 2010.

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