The Consunji family’s Dacon Corp. is infusing P10 billion in its listed holding company DMCI Holdings Inc. to help fund the acquisition of cement manufacturer Cemex Holdings Philippines Inc. (CHP).
DMCI said in a stock exchange filing Tuesday its board approved the issuance of 10 million Class B preferred shares by way of private placement to its parent firm Dacon Corp. at P1,000 apiece for a total of P10 billion.
The preferred shares will have a fixed dividend rate of 4 percent per annum to be paid out on a quarterly basis.
DMCI will have the option to redeem the preferred shares in one or more installments beginning the fifth anniversary of the issuance of Class B preferred shares and every quarter after the fifth anniversary.
The issuance of the preferred shares is subject to shareholders approval. A special stockholders meeting was scheduled in October.
DMCI will also secure the approval of the Securities and Exchange Commission for the amendment of the articles of incorporation reclassifying 10,000,000 unissued preferred shares into Class B preferred shares.
DMCI last week reported that the Philippine Competition Commission (PCC) approved the conglomerate’s acquisition of 100-percent stake in Cemex Asian South East Corp. (CASEC) from Cemex Asia B.V. for $305.6 million.
CASEC owns 89.86 percent of CHP which sells gray ordinary Portland cement, masonry or mortar cement and blended cement. CHP is the country’s fourth-largest cement manufacturer.
It is in the process of constructing a 1.5-million-ton integrated cement production line at its Solid Plant in Antipolo, Rizal. This will increase the company’s overall installed annual production capacity by 26 percent to 7.2 million from 5.7 million tons.
DMCI said the addition of cement manufacturing would be a good fit to the group’s business portfolio, which now includes real estate development, coal mining, power generation, construction and nickel mining.
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