Huaxin Cement's major shareholder plans significant stake increase

Huaxin Cement Group Co., Ltd. recently announced that its major shareholder, Huaxin Group Co., Ltd., plans to increase its stake in the company. Huaxin Group intends to acquire additional A-shares through the Shanghai Stock Exchange's centralized bidding system within six months. The total investment for this stake increase will be no less than 200 million yuan and no more than 400 million yuan.

The funding for this initiative will come from Huaxin Group's proprietary funds and a special loan of up to 360 million yuan provided by the Hubei Provincial Branch of Industrial and Commercial Bank of China. This loan, with a term of three years, was formalized following a loan commitment letter issued by the bank.

Huaxin Group currently holds 338,060,739 A-shares, representing 16.26% of Huaxin Cement's total share capital. The company clarified that this stake increase plan will not trigger a tender offer and will not lead to a change in the company's controlling shareholder or actual controller. Huaxin Group has also committed not to reduce its holdings during the stake increase period and within the legally specified timeframe.