July 1 -- Sichuan Shuangma Cement (000935) said it will conduct a private placement of 250 million shares at not less than 11.25 yuan per share to a maximum of 10 designated investors, reports Shanghai Securities News.

The proceeds of 2.81 billion yuan will be used to purchase a 25 percent stake in Dujiangyan Lafarge, a 75 percent stake in Guizhou Dingxiao, a 75 percent in Guizhou Xinpu, and to fully acquire Zunyi Sancha.

Upon the completion of the stake purchases, the operation area of Shuangma Cement will be expanded from Sichuan province to Guizhou province.

Dujiangyan Lafarge, Guizhou Dingxiao and Guizhou Xinpu recorded 2010 net profits of 414 million yuan, 2.12 million yuan and 1.49 million yuan, respectively. Zunyi Sancha posted a loss of 22.82 million yuan in 2010.

Shuangma Cement recorded net profit of 33.93 million yuan in 2010.

According to the report, the second-largest shareholder of Shuangma Cement, Lafarge Shui On (Sichuan) Investment, will further inject its cement assets into Shuangma Cement.

France's Lafarge Group, the effective controller of Shuangma, is among the top 500 enterprises worldwide. It is a global market leader in the cement, gypsum board, and concrete sectors.

Lafarge Group entered China in 1994 with the establishment of Lafarge China Offshore Holding. It will remain as the parent of Shuangma Cement after the completion of the private placement, which will see its stake in Shuangma Cement falling from 77.6 percent to an estimated 55.19 percent.

Shares of Shuangma Cement resumed trading today, with the stock up 7.79 percent to close the morning session at 14.26 yuan.