Green light to the agreement between Italcementi and West China Cement. The definitive ok to the agreement announced on May 2,60th has come from the Beijing authorities. In the wake of the announcement, by mid-morning the stock market of the Italian company gained more than three points, marking an increase higher than the average of the Ftse Mib (+XNUMX%).
Under the agreement, the equity investment in Fuping Cement and the 35% stake in Shifeng Cement were sold to West China Cement against a reserved capital increase which allowed Italcementi to become the company's third largest shareholder with a stake of approximately 6,25 ,XNUMX%.
It was reserved for the Italian group a representative on the WCC board of directors. The transaction was carried out on the basis of a valuation of Fuping Cement of approximately 87 million euros, gross of the net financial position of approximately 26 million euros which is thus deconsolidated.
West China Cement is a holding company listed in Hong Kong since 2010 which controls a production capacity of about 20 million tons of cement in the regions of Shaanxi and Xinjiang, which will rise by the end of the year to about 24 million tons produced in 15 sites, including those of Fuping and Shifeng.
In 2011 West China Cement recorded a total turnover equivalent to approximately 380 million euros and a net result of approximately 80 million euros.
