Huaxin Cement (06655. HK) announced that on March 13, 2023, Huaxin (Hong Kong) International Holdings, a wholly-owned subsidiary of the company, intends to acquire 59.58% of the target company from the seller's Investment Authority SPC. The total consideration is approximately $193.1 million.
It is reported that the target company is Oman Cement Company, a local registered cement manufacturer in Oman, listed on Muscat StockExchange in Oman. The Target Company was established in 1983, and its main business is the production and sales of cement, with a clinker production capacity of 2.61 million tons/year and a cement production capacity of 3.6 million tons/year. The Target Company is located in the capital region of Oman and is the only clinker plant in the north of Oman.
Huaxin Cement is one of the earliest cement enterprises in China's building materials industry to go out. This project is a decisive measure for the company to actively promote overseas development strategy, lay out new markets and realize rolling development in overseas areas, and is the core layout of the company's development in the Middle East. The successful implementation of this project is the first time for the company and even Chinese cement enterprises to enter the Middle East market. The past history
of Huaxin Cement has proved that it has the ability to improve the operational performance of the acquired assets in overseas acquisitions. Because of its positive market prospects in Oman and the potential for identified synergies and improvements, the acquisition will bring considerable economic benefits to the company upon completion.
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