Tianshan Intends to Acquire 51% of Ningxia Horse Racing by Capital Increase

Tianshan Stock (000877) announced in the evening of June 27. The company intends to increase its capital by 2.718 billion yuan in cash to acquire 51% of the controlling rights of Ningxia Saima Cement Co., Ltd., which integrates the controlling rights of cement and other related business subsidiaries and trademarks. If

the acquisition is successfully implemented, it will effectively solve the problem of competition between the company and Ningxia building materials in the cement sector related business, further increase the company's production capacity, optimize the regional layout in the west, and further promote the company's high-quality development.

Meanwhile, China National Building Material (03323) announced that on 27 June 2023, Ningxia Building Material and Tianshan Cement entered into a supplemental asset restructuring agreement to agree on the consideration for the restructuring of cement assets. Tianshan Cement will acquire the Target Cement Assets from Ningxia Building Materials (i.e. 51% equity interest in Ningxia Saima after the completion of the integration of internal cement assets). In particular, the consideration for the Target Cement Assets is RMB2.718 billion, which will be paid in full by Tianshan Cement by way of capital increase to Ningxia Saima in cash (of which RMB520 million will be the registered capital and RMB2.197 billion will be the capital reserve) on the record date for the implementation of the Merger.