17th Oct 2006 07:30
CRH PLC17 October 2006 N E W S R E L E A S E 17th October 2006 CRH SIGNS LETTER OF INTENT FOR ACQUISITION OF EQUITY STAKE IN CHINESE CEMENT PRODUCER CRH plc, the international building materials group, announces the signing of aLetter of Intent to acquire an equity interest in the cement operations of theJilin Yatai Group. These operations (Yatai Cement) comprise 4 integrated cementplants and one grinding station, with total cement capacity of approximately 9million tonnes per annum, located in the provinces of Jilin and Heilongjiang innortheast China. The Jilin Yatai Group is listed on the Shanghai Stock Exchangeand Yatai Cement is one of the ten largest cement groups in China. The Letter of Intent provides for the initial purchase by CRH of a 26% equitystake in Yatai Cement with an option to acquire further shares after 3 years upto a maximum of 49%. Completion of the proposed transaction is subject todetailed negotiation and due diligence, and to Chinese government approval.Additional information will be provided in due course. In a comment, Liam O'Mahony, CRH Chief Executive, said "CRH's proposed equitystake in Yatai Cement when combined with the agreement to acquire the HarbinSanling Cement Company in Heilongjiang province (announced on 10 October)provides an excellent opportunity for CRH to develop a strong position over timein what we believe are attractive markets in northeast China with good long-termgrowth prospects". Contact CRH at Dublin 404 1000 (+353 1 404 1000)Liam O'Mahony, Chief ExecutiveMyles Lee, Finance Director CRH plc, Belgard Castle , Clondalkin, Dublin 22, Ireland TELEPHONE +353.1.4041000 FAX +353.1.4041007 E-MAIL [email protected] WEBSITE www.crh.com Registered Office, 42 Fitzwilliam Square, Dublin 2, Ireland This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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