Building materials provider Cemex announced that its subsidiary Cemex Asia has signed an agreement with DACON, DMCI and Seminara Mining & Power for the sale of its operations and assets in the Philippines.
Cemex says that once closed this transaction will further advance its portfolio rebalancing strategy.
Proceeds from the divestment are expected to be used to fund the company’s bolt-on investment growth strategy in its key markets, reduce debt, and for other corporate purposes.
The assets to be sold by Cemex Asia consist of:
1. A 100% equity interest in Cemex Asian South East Corporation, which owns approximately 89% of Cemex Holdings Philippines (CHP), which is listed on the Philippine Stock Exchange, for a purchase price resulting from deducting from an enterprise value of US$660m the net debt and the 10.14% minority interest in CHP. CHP is the owner of Cemex’s main operating subsidiaries in the Philippines, APO Cement Corporation and Solid Cement Corporation, which are engaged in the production, sale, and distribution of cement and other buildings materials in the Philippines
2. A 40% indirect equity interest in each of APO Land & Quarry Corporation (ALQC) and Island Quarry and Aggregates Corporation (IQAC), for a purchase price to be paid to Cemex of 40% of an aggregate enterprise value of US$140m.
Cemex currently expects to finalise this transaction before year-end 2024, subject to the satisfaction of closing conditions, including, but not limited to, the approval by the Philippine Competition Commission and the fulfillment of any mandatory tender offer requirement by the purchasers to the shareholders of CHP, including the approximate 10.14% minority interest owned by third parties in CHP.
Pending the closing of the transaction, Cemex says its operations and business in the Philippines will continue in the ordinary course attending to all clients, suppliers, and other stakeholders.
