Private Equity Could Do Worse Than Cement Makers
Cash and low debt make these downtrodden companies an unexpected target.
Slowing property market, but cement makers are still cashed up.
Photographer: Raul Ariano/BloombergNews last week that Asia Cement China Holdings Corp. may be entertaining a take-private offer from its major shareholder reminds us just how tough recent years have been for construction suppliers. But a closer look at the Taiwanese company and its peers shows there may be hidden value.
Far Eastern New Century Corp., the flagship of Douglas Hsu’s sprawling empire that spans telecoms to shipping, is considering a buyout of Hong Kong-listed Asia Cement China, Bloomberg News reported. Far Eastern is the biggest shareholder of Taipei-listed Asia Cement Corp. — the company that may make the offer — which in turn owns at least 73% of Jiangxi-based Asia Cement China whose shares were suspended May 28 pending an announcement.