Stocks News
- Conch may sell shares to boost output
Date: 28-Jun-2007 Sources: (Shenzhen Daily)
ANHUI Conch Cement Co., China's biggest maker of the construction material, plans to sell shares valued at 11 billion yuan (US$1.4 billion) in Shanghai to upgrade power equipment and boost output.
The company will offer 200 million new shares, equal to an 11.3 percent stake after the sale, Conch said in a statement yesterday, without giving a price or timing.
Anhui Conch will spend part of the funds on new boilers and generators, advancing a government goal of curbing pollution in China, the world's biggest maker and user of cement.
The offer adds to about US$13.5 billion of equity sales announced in the past two months as the government pushes State-owned companies to raise funds to help damp demand in a market that has almost doubled in 2007.
'The share sale will help consolidate the company's dominance and enable it to use its own spare funds for acquisitions nationwide,'' said Li Fan, an analyst at China Merchants Securities Co. in Shenzhen.
The new power equipment will cut energy consumption and save costs, Anhui Conch said. The company will also use some of the proceeds to boost annual cement production capacity to about 87 million tons from 65 million tons.
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