Shareholders of Asia Cement (China) have rejected a proposal from its majority owner, Taiwan-listed Asia Cement Corp, to take the company private. The deal, which valued the company at HK$5.05 billion ($647.8 million), faced opposition from minority shareholders who hold 26.62% of the firm.
Asia Cement Corp, which owns a 73.38% stake in the Hong Kong-listed subsidiary, had offered HK$3.22 per share in early June, a 3% discount to the closing price on May 28. The offer came as construction suppliers, including Asia Cement, continue to struggle with China’s property sector crisis.
Despite the offer, minority shareholders voted against the privatization plan, reflecting concerns that the valuation did not adequately compensate for the company’s potential, even in a challenging market environment. Since the deal was announced, Asia Cement (China)’s shares have fallen by more than 9%.
The rejection highlights the growing tensions between majority and minority shareholders in companies affected by China’s real estate downturn, with investors increasingly wary of lowball offers amid uncertain market conditions.
