NEWS

On June 10, 2021, the Third Meeting of the Tenth Board of Directors of Huaxin Cement reviewed and adopted the Proposal on Transaction of Acquisition of Lafarge Zambia, Malawi Cement and Related Businesses. It approved Huaxin (Hainan) Investment to acquire Lafarge Zambia Plc with an enterprise value of US$150 million and Lafarge Cement Malawi Ltd with an enterprise value of US$10 million as the direct buyer to acquire 24.9% and 50% shares of Lafarge Zambia Plc held by Financière re Lafarge SAS and its wholly-owned subsidiary Pan African Cement, and 100% shares of Lafarge Cement Malawi Ltd held by Pan African Cement. The Company may also acquire up to 25% shares of Lafarge Zambia Plc from the public. The deal would give the Company an additional annual output of 1.75 million tons of cement in the two African countries. It can enhance the steady implementation of the Company's overseas development strategy and the expansion of the Company's strategic layout in the African region. The Company will make necessary improvement on acquired assets with its technological and human resources advantages in the cement field after the acquisition to improve the operating efficiency and reduce costs by management means. Thus, the competitiveness and performance of the acquired assets will be enhanced. Furthermore, the Company can also use the limestone resources reserved in the project to increase the cement production capacity in the future, so as to achieve the rolling development of overseas projects and explore the development in African countries along the "Belt and Road Initiative" corridors. This is believed as a key step for Huaxin Cement to expand its overseas business. At the forefront of internationalization, Huaxin Cement—a leader in China cement industry is expected to further expand its share in the African market with this acquisition as it takes advantage of the chance of African infrastructure construction.