Gypsum industry news

Australia/Singapore: Knauf has agreed to buy Boral’s 50% stake in USG Boral for US$1.02bn, bringing its total stake in the former Boral and US-based USG joint venture to 100%. The joint-venture includes gypsum wallboard-based businesses in Australia, New Zealand, Asia and the Middle East. The deal is “subject to typical conditions precedent including in relation to regulatory matters.”

Boral chief executive officer (CEO) and managing director Zlatko Todorcevski said, “We have been working with Knauf for some time to find the best path forward for the business following Knauf’s acquisition of our joint venture partner USG. We recognise that it makes sense for Knauf – being the world’s largest gypsum wallboard player – to have 100% ownership of the business. USG Boral is a great business, and very well positioned to perform strongly under the ownership of Knauf. The strength of the joint venture business and its prospects are fully reflected in the sale price, as demonstrated by the attractive premium, which is a great outcome for Boral shareholders. The sale of Boral’s interest in USG Boral to Knauf will be a step to simplifying Boral’s geographic footprint and product portfolio.”

Singapore: Sincap has appointed Teng Wai Leung Wilson as an independent director. Teng, aged 53 years, is the chief execute director of Datapulse Technology, a provider of digital storage products and services. Previous to this he worked for iAdvantage, Digital Reality and GTT Communications.

China/Singapore: Sincap Group, a gypsum mining company in China's Shandong Province, has launched an initial public offering for a listing on the Catalist board of the Singapore Exchange. The company is offering 32.5 million shares, comprising 25.5 million new shares and seven million vendor shares, at US$0.16 apiece.

Sincap hopes to raise US$4.1m, which will be earmarked for use in diversification of its products and for general working capital. Specifically, the group plans to construct and commission a K-gypsum powder plant. K-gypsum powder, which can only be processed from crystalline gypsum, is commonly used in the manufacture of moulds for precision casting as well as plaster casts for medical uses. The company also possesses mining and exploration rights to some of the largest gypsum reserves in the Dawenkou Basin in Shandong Province.

"Our decision to list is timely considering our current stage of development. With the funds raised we will be able to realise the untapped potential in our gypsum business, particularly with regard to a new product, K-gypsum powder, that we intend to develop," said Sincap's chairman and CEO Fu Hao.