Taiwan Cement Corp to privatise subsidiary

Taiwan Cement Corp, the country’s largest cement maker, yesterday announced a proposal to privatise its TCC International Holdings Ltd (TCCI) subsidiary and delist from the Hong Kong Stock Exchange.

TCCI has cement operations in several southern Chinese provinces.

If the proposal is completed, TCCI would become a fully-owned unit of Taiwan Cement, TCCI managing director, Jason Koo, told a news conference.

Taiwan Cement is the largest shareholder of TCCI, owning 63.05 per cent of the firms issued shares, while local peer Chia Hsin Cement Corp has a 9.7 per cent stake.

Taiwan Cement said it offered to buy the 36.95 per cent of shares at HKD3.60 per common share, a 38.5 per cent premium over TCCIs closing price of HKD2.60 on the Hong Kong Stock Exchange on Tuesday.

It also offered to swap shares with TCCI shareholders at a ratio of 0.42 Taiwan Cement shares per TCCI common share.

The acquisition plan requires approval by the Investment Commission and the Financial Supervisory Commission, Taiwan Cement said.