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)