Swiss cement firm Holcim ups stake in China Huaxin


Updated 2008-02-18

SHANGHAI, Feb 17 (Reuters) - China's Huaxin Cement (600801) said on Sunday it raised 2.03 billion yuan ($282 million) by selling new shares to Holcim (HOLN.VX), lifting the Swiss firm's stake in it to 39.88 percent from 26.11 percent.

Huaxin (900933.SS) said it placed 75.2 million local currency A shares with Holcim at 26.95 yuan apiece, a 26 percent discount to the stock's last market close of 36.23 yuan. Holcim's current stake in Huaxin is in the form of foreign currency B shares. The Chinese company said it would spend money raised from the share sale on projects to expand its annual production capacity by 9.5 million tonnes of cement and 5.3 million tonnes of clinker.

As of September 2007, China Huaxin had a cement production capacity of 30.7 million tonnes.

Holcim said last month that it had won approval for the deal from the China Securities Regulatory Commission after the Swiss firm agreed with Chinese authorities not to raise its stake to a majority position. ($1 = 7.18 yuan)

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