Huaxin Building Materials (HKG:6655) agreed to acquire cement maker Holcim Philippines in a two-stage transaction, according to a Sunday Hong Kong bourse filing.
The company will initially buy an indirect 67.6% stake from Holderfin B.V., a subsidiary of controlling shareholder Holcim, for about $527 million.
Three years after closing, it will acquire the remaining 31.4% stake under agreed call and put option arrangements for a minimum of $280 million.
Following the first-stage acquisition, Huaxin will launch a mandatory tender offer for the remaining public shares of Holcim Philippines.
Upon completion of both phases, Holcim Philippines will become a wholly owned subsidiary of the company.
Shares of Huaxin fell nearly 2% in Monday morning trading.