China: Shanshui Cement to raise HK$456m from placing

Shanshui Cement announced that it has entered into a placement agreement, proposing the placing of 910-950m new shares at a price not less than HK$0.5/share. This placing price represents a 92.1 per cent discount when compared to its closing price of HK$6.29 (US$0.81).

The placing shares represent 21.2-21.9 per cent of the enlarged issued share capital of the group. Estimated net proceeds stand at HK$436.85-456.25m (US$56.3-58.8m), which will be applied to settle the group’s outstanding debt.

Trading in Shanshui Cement shares will remain suspended until further notice.

Shanshui Cement is headquartered in Jinan, Shandong Province, and has an estimated installed clinker capacity of 59.56Mta.