Prosperity Minerals
Prosperity is an iron ore trader serving customers in the People's Republic of China (the 'PRC') and holds investments in entities involved in the manufacture and sale of cement and clinker in the same market.
Prosperity also has a real estate division and has recently entered into a number of conditional agreements designed to build up a portfolio of PRC property and development assets.
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Prosperity Minerals completes acquisition of 25% stake in Liaoning Changqing Cement
China-focused iron ore trading business and real estate investor Prosperity Minerals Holdings (LON:PMHL) has received all the necessary approvals for the acquisition of a 25% interest in Liaoning Changqing Cement and the deal was completed today.
The completion of the acquisition was wrapped up with the payment of the consideration of RMB100 million, or about £9.5 million to the vendor Liaoning Yan Zhou Zhu Xing Cement.
Prosperity’s wholly owned subsidiary Sintex International Holdings entered into a conditional agreement to buy the 25% stake in Liaoning Changqing.
Prosperity previously owned a 75% equity stake in Liaoning Changqing - which was disposed of as part of the company’s £385 million asset sale to TCC International Ltd (TCCI). The company said that since the transaction between Prosperity and TCC, the vendor of the 25% stake decided that it did not wish to be part of a joint venture with an unfamiliar party (TCCI).
Not that long ago, Liaoning Changqing completed the construction of a cement and clinker production line, which has a production capacity of 2 million tonnes per annum.
Subsequently, the production line began trial production in March 2010, and the start of normal production is expected in September.
The company believes that it will have the opportunity to sell the 25% interest in Liaoning Changqing, at a higher valuation following commencement of normal production at the Liaoning plant.
The net asset value of Liaoning Changqing, as shown in the unaudited accounts as at 30 April 2010, was RMB 218.5 million (approximately £22.29 million).
Late last month, Prosperity received the final £16.5 million payment from the disposal of it cement businesses
to TCC International Limited.
Since the disposal, Prosperity Minerals has focused on the development of its Chinese iron ore business, and it has also entered the Chinese real estate sector.
The greater emphasis on iron ore, was reflected in the company’s latest result which showed an 80% year-on-year increase in the total tonnage shipped to 7.9m tonnes (FY09: 4.4m tonnes).
According to Prosperity, the PRC’s long term urbanization plan brings increased demand for high-quality housing in China’s cities.
Other Prosperity Minerals news
- Prosperity Minerals sees more domestic demand coming from China’s new 5 year plan
2010-11-30 - Prosperity Minerals performing in line with expectations
2010-10-08 - Prosperity Minerals receives final payment from disposal of cement business
2010-08-21 - Prosperity Minerals to pay £70.1m for Guangzhou properties
2010-07-30 - Prosperity Minerals revenues hit US$849 million in FY09
2010-07-06
