CNBM To Take Control Of Luoyang Glass

China's largest building materials manufacturer, China National Building Material Group (CNBM), agreed to take control of Luoyang Glass Co, one of China's largest glass makers.

According to a statement to the Hong Kong exchange, Luoyang State-owned Assets Operation Co will transfer 70 per cent of Luoyang Float Glass (Group) Co to CNBM.

Luoyang Float Glass has a 35.8 per cent stake of Luoyang Glass and is its largest shareholder, said the statement.

"CNBM will inject 40 million yuan (US$5.13 million) of capital into a subsidiary of Luoyang Glass, and guarantee loans for Luoyang Glass of up to 250 million yuan (US$32.05 million)," said the statement.

This March, CNBM made its initial public offering (IPO) on the Hong Kong Stock Exchange, which raised up to US$231 million to fund its expansion.

The Beijing-based company has controlling stakes in Beijing New Building Material Co, a mainland-listed company. It is the largest manufacturer of gypsum board, a kind of building material in China.

Another mainland-listed company under its control, China Fiberglass Co, has become one of the four biggest fibreglass suppliers in the US market.

Analysts said that the nation's glass industry will see more consolidation in coming years, with some low efficiency and small players knocked out.

Last month the US investment bank Goldman Sachs offered to buy a 9.98 per cent stake in China's biggest auto glass maker, Fuyao Glass Industry Group Co, for 890 million yuan (US$113 million).

Read the entire news on the source link below.

600450 CNBM To Take Control Of Luoyang Glass
Date: 20 December 2006

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