China Shuangma said on Friday it planned to sell new shares worth $410 million to a unit of French construction group Lafarge to raise money to buy the unit's assets in a joint venture.
Shuangma aimed to sell 368 million yuan-denominated A shares to Lafarge China Offshore Holding Co at a price of 7.61 yuan each to raise 2.8 billion yuan ($410 million) to buy a 50 percent stake in Dujiangyan Lafarge Cement Co, which is now owned by Lafarge China Offshore, Shuangma said in a statement.
The private placement, originally announced by Shuangma last September at a value of around 3.0 billion yuan, would be submitted to a Shuangma shareholders' meeting for approval on Jan. 23, it said in a filing to the Shenzhen Stock Exchange.
Lafarge China is a wholly owned subsidiary of Lafarge Shui Cement Co, the world's biggest cement producer and a joint venture between Lafarge and Hong Kong-listed Shui On Construction and Materials Ltd.
Dujiangyan Lafarge Cement has an annual capacity of 3.2 million tonnes and it is building a new production line with additional capacity of 2 million tonnes a year, expected to come into operation in April 2010.
Lafarge China owns 75 percent of Dujiangyan and China's Dujiangyan City Construction and Materials Co owns the rest.
Shuangma's Shenzhen-listed A shares closed up nearly 5 percent at 7.40 yuan on Friday, outperforming a 1.42 percent rise in China's benchmark Shanghai Composite Index .SSEC.(Reuters)
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