Slaughter and May, Hong Kong, is advising China National Building Material Company Limited ('CNBM') in relation to its subscription for new ordinary shares in China Shanshui Cement Group Limited ('Shanshui') for a total consideration of HK$1.56 billion (US$201 million). The transaction will give CNBM a 16.67% interest in Shanshui. The shares will be issued pursuant to the general mandate granted by the shareholders of Shanshui at its last Annual General Meeting.

CNBM is a leading building materials company in the PRC with significant operations in cement, lightweight building materials, glass fibre and composite materials, and engineering services business segments. Slaughter and May advised on its listing in Hong Kong in 2006.

Shanshui is one of the largest producers of clinker and cement in the PRC. Shanshui is also listed on the Hong Kong Stock Exchange.

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Corporate: Benita Yu (partner), Carmen Lau (associate), Vincent Chan (associate)