West China Cement to list on Hong Kong Stock Exchange


Updated Fri, 23 Oct 2009 00:00:00 GMT

West China Cement Ltd (WECC.L) said it was preparing to list its shares on the Hong Kong Stock Exchange (HKSE) and had entered into a $50 million bridging loan facility.

The company, which aims to be listed on the HKSE before June 30, 2010, said it would also consider whether it was appropriate to retain a listing in London.

The company, whose shares soared to a two-year high of 490 pence earlier in the day, also said it had amended its warrant instrument entered into with Credit Suisse in 2008 in
preparation for the proposed listing.

Under the amendment, West China will redeem all of the 7.8 million warrants and take a related charge of $21.1 million in the second half of 2009 and a total charge of $30.2 million for the financial year.

West China said the bridge loan will be used to finance the redemption of warrants and for general working capital purposes.

The company said the loan, secured by a charge over 19.4 million shares, or a 29.9 percent stake, held by Chief Executive Jimin Zhang, was due for repayment nine months from
the date of the utilisation or immediately upon its listing on the HKSE, whichever is earlier.

Shares of the cement producer that operates in Shaanxi Province in China were trading up 7.1 percent at 476.5 pence at 1035 GMT on the London Stock Exchange.