Friday, July 10, 2020
Martin Hennecke

Cement firm plans $4.2b share sale
China Resources Cement Holdings (1313) said on Tuesday it planned to sell HK$4.19 billion (US$534 million) worth of new shares to its controlling shareholder, raising capital for business development, to repay debt and for working capital.

The cement and concrete producer said it would sell 450 million new shares to CRH (Cement) at HK$9.30 apiece, representing a 9.88 percent discount to the previous close. CRH will the buy the new shares following its sale of the same amount of existing shares at the same price to third-party investors.

China International Capital Corp Hong Kong Securities and Goldman Sachs (Asia) are the placing agents.

The shareholding of CRH and its associates in the cement producer will be reduced to 68.72 percent on completion of the deal, from 73.45 percent.

Following the announcement, shares of CRH fell 13 percent to HK$9 at the close yesterday.

The Hong Kong-listed firm said on Monday it expected to see a "significant increase" in first-half net profit due to the higher selling price of its cement products.


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