Sinoma to subscribe new shares of Xinjiang Tianshan Cement

Byswb

Updated Thu, 30 Apr 2009 00:00:00 GMT

China National Materials Co Ltd (Sinoma), the world's largest provider of cement-producing equipment, plans to spend RMB 1 billion in purchasing new shares of Shenzhen-listed Xinjiang Tianshan Cement Co Ltd, sources reported.

Sinoma is expected to raise its shareholding in Xinjiang Tianshan Cement to 44.36% from the current 36.28%.

Xinjiang Tianshan Cement said in a statement filed with the Shenzhen Stock Exchange yesterday that it will issue up to 200 million shares at an average price not less than RMB 13.26 apiece to up to 10 investors.

The issuance plan has obtained approval from China Securities Regulatory Commission (CSRC).
 
The RMB 1.5 billion in proceeds will be used to finance Xinjiang Tianshan Cement's 2500t/d dry cement clinker production lines, replenish working capital, and repay bank loans.