(Yicai) July 29 -- A group of companies under China National Building Material Group intends to spend up to USD145 million to buy Tunisian cement production facilities owned by a Spanish unit of Votorantim Cimentos, the largest cement company in Brazil.

CNBM, and its two listed units of Tianshan Material and Sinoma International Engineering, agreed with Votorantim Cimentos EAA Inversiones to purchase all the equity of Société Les Ciments de Jbel Oust, better known as CJO, and its subsidiary Granulats Jbel Oust, better known as GJO, via a newly established special purpose vehicle registered in the United Arab Emirates, the buyers recently announced in separate statements without disclosing the expected addition of annual production capacity.

The preliminary value of the deal is USD130 million but the price might change based on the target companies' audited cash, debt, and working capital on the delivery date so the actual transfer might tally up to USD145 million, the firms added.

The target assets are mature and integrated cement companies in North Africa which have a long history of stable operations and are located close to a port. The deal should help the buyers promote the international layout of their cement business, they added. Tianshan Cement is one of China’s major cement producers, and Sinoma is an engineering contractor that can make large and medium-sized cement production lines.

The deal is pending authorization by the Common Market for Eastern and Southern Africa, a regional economic organization with 21 member states, and regulatory agencies of Tunisia and China.

The acquisition sparked modest stock price increases. CNBM [HKG: 03323] climbed 1.6 percent to HKD2.56 (US 30 cents) in Hong Kong as of 2.53 p.m.

Tianshan Cement [SHE: 000877] closed 1.5 percent higher at CNY5.36 (US 70 cents).

Sinoma [SHA: 600970] ended the day 3.5 percent up at CNY9.88.

Editor: Emmi Laine