Gansu Qilianshan Cement to sell 50 million shares to CNBM

Gansu Qilianshan Cement Co<600720> announced on Monday that it has inked an agreement with China National Building Material Co (CNBM)<3323> on March 14, under which CNBM will buy 50 million new shares from the cement maker.

The deal, with an estimated value of about RMB 493 million (US$69.5 million), is expected to help the company to consolidate the cement market in Northwest China, according to the company's statement. But it did not disclose the offering price per share.

The placement is part of Qilianshan's secondary offering plan to issue up to 150 million new shares, equivalent to nearly 20% of its enlarged share capital, to no more than 10 institutional investors.