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China Shanhui Cement to lift HK$475mn by arising new shares during a 92pc bonus to pre-suspension share price

China Shanshui Cement Group has denounced a long-awaited devise to lift HK$475 million by offered shares to accommodate a smallest open shareholding requirement as a listed firm. But a deduction will be distant too tiny to assistance it accommodate a requirement to repay 17.63 billion yuan of liabilities by Jun subsequent year.

The Shandong province-based company, once a nation’s seventh-largest concrete maker, has allocated brokerages Sun Hung Kai Financial and ABC International as agents to sell 910 million to 950 million new shares, it pronounced late on Thursday in a filing to Hong Kong’s bourse.

“Upon execution of a [share] placing, open boyant of a association will be restored

which will promote a destiny account raisings of a association to solve a liquidity issue,” it said.

More twists and turns in a ongoing quarrel for control of China Shanshui Cement

The shares will be sole during not reduction than 50 HK cents each, that is 92.1 per cent reduction than a final shutting cost of HK$6.29 midst Apr final year, when trade in a share was halted tentative a devise to revive a open boyant to a compulsory turn of during slightest 25 per cent.

The chain cost is also a bonus of 55 per cent to a per share unaudited net item value of HK$1.11 on Jun 30.

The shares will be sole during not reduction than 50 HK cents each, that is 92.1 per cent reduction than a final shutting cost of HK$6.29 midst Apr final year, when trade in a share was halted tentative a devise to revive a open boyant to a compulsory turn of during slightest 25 per cent.

The chain cost is also a bonus of 55 per cent to a per share unaudited net item value of HK$1.11 on Jun 30.

“The smallest fixation cost was arrived during after arm’s length traffic between a association and a fixation agents with anxiety to a net stream liabilities, net item value, share price-to-book value ratio, lengthened cessation of a shares, financial liabilities and litigations involving it,” China Shanshui said.

The new shares volume to a 21.94 per cent seductiveness in a firm’s lengthened share collateral after a placement.

New Shanshui CEO assured of fighting off rivals in China’s concrete war

If 950 million shares are sold, it will see a seductiveness of a stream largest shareholder, Henan province-based Tianrui Group, tumble from 28.16 per cent to 21.98 per cent, while that of China Shanshui Investment, a former largest shareholder led by former authority Zhang Caikui and his son Zhang Bin, would decrease from 25.09 per cent to 19.59 per cent, according to a filing.

Taiwan-listed Asia Cement’s seductiveness would be diluted from 20.96 per cent to 16.36 per cent, and that of state-backed and Hong Kong-listed China National Building Material (CNBM) would be reduced from 16.67 per cent to 13.01 per cent.

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China Shanshui pronounced a shares’ purchasers will be “professional, institutional and other investors comparison and procured by or on seductiveness of a fixation agents.”

CNBM association secretary Chang Zhangli pronounced a share placement’s cost discounts are too high and will outcome in poignant dilution of a strange shareholders’ interest.

“I don’t know because China Shanshui’s house has concluded to such outrageous discounts,” he told a Post. “If they are assured of a company’s future, they shouldn’t determine to sell during such discounts.”

Tianrui Group, primogenitor of Hong Kong-listed China Tianrui Group Cement, in Apr final year launched a antagonistic takeover by gnawing adult China Shanshui’s shares in a open marketplace and became a largest shareholder.

The pierce resulted in a company’s open boyant dropping next a smallest requirement and resulted in a trade suspension.

Although an instance of most indispensable converging of China’s fragmented and over-capacity-troubled concrete industry, Tianrui’s takeover of China Shanshui was anything though smooth. Other vital shareholders, including China Shanshui Investment, Asia Cement and CNBM have resisted a antagonistic takeover.

After Tianrui gained control of China Shanshui’s board, a Zhangs retreated to a domicile in Jinan, Shandong, and hold a corporate sign of a categorical handling auxiliary in an try to keep handling control, a pierce seen by some as legally questionable.

The Tianrui-led new Shanshui house also launched a singular law fit opposite a Jinan government, a mayor Yang Luyu and emissary mayor Su Shuwei in Mar in a Hong Kong court, alleging that they conspired with a Zhangs to implement a operative group, blocked a new house from gaining entrance to a Jinan domicile and secluded a association sign and lawsuit records.

Asia Cement and CNBM in Jul final year pronounced they were deliberation to offer to buy out all of a other shareholders of China Shanshui, though unsuccessful to furnish an offer by May.

Under a “put up” an offer or “shut up” order underneath Hong Kong’s bonds regulations, they were forced to announce that they motionless not to ensue with any offer, that liberated China Shanshui’s house from a limitation to emanate new shares.

Trading of China Shanshui’s shares will sojourn dangling “until serve notice” and is tentative a replacement of a compulsory open float, a filing said.