June 30 -- Tangshan Jidong Cement (000401) won approval from the China Securities Regulatory Commission for its private placement, reports 163.com, citing a company filing.

Jidong Cement intends to raise 1.914 billion yuan through the issue of 134 million shares to Diamondrock Investment at 14.21 yuan per share.

Funds raised will be used to supplement Jidong Cement's working capital.

After the share acquisition, Diamondrock Investment will hold a 10 percent stake in Jidong Cement.

Diamondrock Investment is a wholly-owned subsidiary of Direct Manage Investment, which is registered in the British Virgin Islands and is 42.07 percent owned by New Horizon Capital, a private equity firm focused on the Chinese market.

China International Capital Corporation (CICC) forecasts a 39.8 percent year-on-year increase in Jidong Cement’s cement and clinker sales to 66 million tons this year, with the selling prices of its products increasing by an average of eight percent.

CICC predicts gross margin of 34 percent and earnings per share (EPS) of 1.77 yuan for the company.

Source:CapitalVue