CONSUNJI-LED DMCI Holdings, Inc. said on Monday that it had executed an amendment agreement with Cemex Asia B.V. regarding the sale and purchase of shares in Cemex Asian South East Corp. (Casec).
The agreement, executed last Sunday together with Semirara Mining and Power Corp. (SMPC) and Dacon Corp., is expected to hasten the Consunji Group’s acquisition of Casec.
The Consunji Group and Cemex agreed to conduct certain standard confirmatory testing related to the Solid Cement Corp. plant expansion after closing, which is expected to be completed within the first quarter of 2025, DMCI told the stock exchange on Monday.
“The seller and the purchaser agreed, among other matters, to waive the condition precedent with respect to the Solid [Cement plant] expansion under the SPA,” it said.
Mexican multinational building materials company Cemex S.A.B. de C.V. announced in April that it was divesting its operations in the Philippines as part of a rebalancing strategy.
Cemex Asia B.V. signed a deal to sell roughly 42 million common shares, representing 100 percent of Casec’s outstanding share capital, to the Consunji Group for $305.6 million (approximately P17.9 billion).
Casec owns approximately 89.86 percent of Cemex Holdings Philippines, Inc. (CHP).
“The April 25 share purchase agreement (SPA) required the seller, Cemex Asia B.V., to deliver an additional 1.5 million tons of production capacity at Solid Cement Corporation, raising Cemex Holdings Philippines, Inc.’s total capacity from 5.7 to 7.2 million tons,” DMCI told The Manila Times in a message.
“To facilitate the transaction, the buyer, the Consunji group, agreed to conduct certain standard confirmatory testing after the targeted financial closing date, through an amendment to the SPA. The expansion plant is now expected to be completed by the first quarter of 2025.”
Dacon last week completed its tender offer for CHP shares as part of the acquisition process.
DMCI said the group expected to close the Casec deal in the coming weeks.
In a separate disclosure, CHP said it has sold its foreign-owned subsidiary, Falcon Re Ltd., to another Cemex subsidiary, Torino Re Ltd., for about $3 million. This comes after it divested its entire interest in another fully owned foreign subsidiary, Cemex Asia Research AG, to Cemex Innovation Holding AG for $900,459.
Both Torino and Cemex Innovation are affiliates of Cemex S.A.B. de C.V.
The transactions are not expected to impact the acquisition or prospective operations of CHP, DMCI said.
CHP remained in the red for the first nine months of 2024, widening its net loss to P2.87 billion from P1.24 billion last year, as revenues fell 9.4 percent to P12.1 billion due to lower cement prices amid tight competition.
DMCI shares on Monday rose 1.13 percent to P10.78 apiece, while CHP shares grew 5.59 percent to P1.89 each.
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