Xinjiang Tianshan Cement Co., Ltd. (SZSE:000877) announced that it has entered into a share subscription agreement for a private placement of not more than 98,847,000 A shares at a price of CNY 6.07 per share with existing investor, China National Materials Company Ltd (SEHK:1893) for gross proceeds of not more than CNY 600,001,290 on June 24, 2016. The shares issued will represent 9.263075% stake in the company. If the subscription price is lower than 70% of the average trading price of the shares of the company in the 20 trading days preceding the first day of the period of issuance under the transaction, the subscription price shall be adjusted to 70% of the average trading price of the shares of company in the 20 trading days preceding the first day of the issuance period. The number of A shares to be issued under the agreement will be adjusted accordingly based on the subscription amount. The investor holds 35.49% stake in the company and will hold 46.80% stake upon closing as it is also subscribing to shares in the company for offsetting its CNY 535,130,000 creditor’s right. The shares will be subject to a lock-up period of 36 months from issuance. The transaction has been approved by the board of the company and is subject to shareholders’ approval, to be obtained at its 5th extraordinary general meeting of 2016 on August 5, 2016. The transaction is subject to approval from China Securities Regulatory Commission and will close within six months after receiving approval.