October 16, 2024 | 12:00am
MANILA, Philippines — The Consunji Group is targeting to close the acquisition of Cemex Holdings Philippines Inc. before the year ends so it can start ushering the cement maker into its recovery phase.
DMCI Holdings Inc. yesterday announced it has received affirmation from 77.29 percent of its investors, representing 10.26 billion shares, to proceed with the issuance of 10 million Class B preferred shares to Dacon Corp.
The shares – to be issued by way of private placement – is valued at P1,000 a piece, amounting to P10 billion, and are payable in a single lump sum or by installment.
The condition, however, is that the payment has to be made no later than the closing date for the purchase of a controlling stake in Cemex Asian South East Corp. (CASEC), the majority owner of Cemex. The Consunjis are acquiring 56.75 percent of CASEC.
As such, DMCI expects to complete all of the necessary procedures, including financial closing, within the fourth quarter. If things go as planned, the Consunji Group should be able to start the transition period in 2025.
The acquisition is being done with regulatory checks, obtaining clearance from the Philippine Competition Commission in August.
The Consunji Group, through DMCI, Dacon and Semirara Mining and Power Corp., entered into a share purchase agreement with Cemex Asia B.V. to buy out its entire stake of 42.14 million common shares in CASEC for $305.6 million.
Cemex is the country’s fourth largest cement producer, responsible for the production of Apo Portland Cement that is popular in Visayas and Mindanao.
Cemex has struggled to keep its finances abreast, losing P2 billion in 2023 on top of P1 billion in 2022. Once controlled by the Consunjis, Cemex seeks to turn its situation around, with Consunji patriarch Isidro eyeing to supply for big-ticket projects under the government’s Build Better More program.
Cemex is a company listed on the main board of the Philippine Stock Exchange. The Consunji Group has no plans of delisting Cemex once it takes over the company.
Consunji also allayed fears that the acquisition of Cemex would impact dividends, as he assured investors that DMCI will keep on paying out at least 25 percent of its core income.
“With fixed interest rates, annual dividend rate is at four percent, [and] the management remains committed to the dividend policy of paying out at least 25 percent of the previous year’s core net income,” Consunji said.
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