TCC International, a Hong Kong- listed subsidiary of Taiwan Cement of Taipei, said on Friday it has agreed to purchase Sichuan Railway Group Cement Co., a Chinese state-owned cement supplier, for a total consideration of 675.9 million yuan, or $110 million. The figure includes debt owned by Sichuan Railway that would be taken on by TCC.
The acquisition is in line with TCC’s push to expand its cement production in China, particularly in the southwestern region. TCC holds Taiwan Cement’s mainland operations. Sichuan Railway Group Cement lost 121 million yuan, or $19.7 million, in 2013.
TCC’s shares have gained 10% in the past 12 months.
TCC chairman Leslie Koo and his family ranked No. 22 on the 2014 Forbes Taiwan Rich List with wealth of $1.7 billion.
China’s cement industry is facing an extended period of relatively slow growth and consolidation that’s opening opportunities for buyers with access to cash.
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