Huaxin Construction (06655) plans to launch foreign exchange derivatives trading

Zhitongcaijing · 2d ago

According to Zhitong Finance App, Huaxin Materials (06655) announced that Huaxin Materials Group Co., Ltd. (hereinafter referred to as the “Company”) plans to acquire shares in Brazilian cement company CSNCIMentosBrasils.a. The agreement stipulates that the target company's corporate value is R$12.7 billion. Since the transaction currency for this merger and acquisition is Brazilian real, in order to reduce foreign exchange risk, the company plans to apply for hedging foreign exchange derivatives (such as forwards, swaps, options, or a combination thereof) with financial institutions to lock in a foreign exchange purchase price of no more than 6.3 billion reais (about 50% of the corporate value).