Gelonghui, April 30, 丨 Jinyu Group (02009.HK) announced that on April 29, 2024, Jidong Cement (000401.SZ, the company's A-share listed subsidiary) signed an equity transfer agreement with the China-Africa Fund. According to this, Jidong Cement conditionally agreed to buy and China-Africa Fund was conditional to sell its underlying shares (that is, 40% of the shares of the target company to be purchased by Jidong Cement under the share transfer agreement). The consideration was approximately RMB 200.1 million.
The target company (that is, China-Africa Jidong Building Materials Investment Co., Ltd.) is a non-wholly-owned subsidiary of the company. It is a limited liability company established under Chinese law, and is mainly engaged in investment activities with its own capital.
The announcement stated that through the acquisition of the target shares, Jidong Cement will hold shares in the target company and its subsidiary Mamba Cement Co., Ltd. (“Mamba Cement”), making Mamba Cement's management rights consistent with the shares, improving management and decision-making efficiency, and continuing to enhance the overseas business layout of Jidong Cement and the company. At the same time, subsidiaries of the target company can be used as overseas investment platforms to build new production lines or invest in mergers and acquisitions on the African continent and other “Belt and Road” countries, which is beneficial to the Group's overseas cement business development.