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 Urban

AP Government's Ambitious Budget for Welfare

The Andhra Pradesh government has proposed a massive Rs 2.94 lakh crore budget focused heavily on welfare initiatives and infrastructure development. Prioritizing social welfare and inclusive growth, the budget emphasizes support for sectors like education, healthcare, and social development to enhance residents' quality of life. Key allocations include substantial funds for improving public infrastructure, roads, and connectivity, which are set to boost local economic activities and employment opportunities. With a large share dedicated to welfare schemes, the budget also focuses on educatio..

Next Story
Infrastructure Transport

Delhi Metro Introduces Bike Taxi Services

Delhi Metro has launched two new bike taxi services aimed at enhancing last-mile connectivity for its users. This initiative focuses on providing a convenient and affordable option for commuters to cover the distance between metro stations and their final destinations. Available at select metro stations, these bike taxis are intended to reduce travel time and alleviate congestion, particularly in densely populated or high-traffic areas. The service offers riders a quick, accessible option for reaching their destinations, ensuring they can seamlessly integrate metro travel with efficient ground..

Next Story
Infrastructure Energy

Inox to Build Bahamas LNG Terminal

Inox has secured a significant contract to construct the Bahamas’ first mini liquefied natural gas (LNG) terminal, aimed at providing sustainable energy for cruise ships docked in the region. This terminal marks a pioneering move for the Bahamas, addressing the rising need for eco-friendly power solutions within the cruise industry. By opting for LNG as a cleaner fuel source, the project is expected to reduce emissions and align with environmental goals, particularly for cruise liners that demand substantial power at ports. The terminal represents Inox’s expansion in global LNG infrastruct..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000