THE Consunji Group, through engineering conglomerate DMCI Holdings Inc. and subsidiaries Semirara Mining and Power Corp. and Dacon Corp., said on Tuesday that it had completed the acquisition of Cemex Asian South East Corp. (Casec) from Cemex Asia B.V. for $272 million (about P15.9 billion).
The acquisition gave the group nearly 90-percent of Cemex Holdings Philippines Inc. (CHP), paving the way for an expansion into cement manufacturing.
The transaction was completed on Monday after the parties agreed to amend the sale and purchase agreement last Sunday, in which the Consunji Group agreed to conduct standard confirmatory testing related to a plant expansion by CHP unit Solid Cement Corp..
CHP, which owns APO Cement Corp. and Solid Cement, currently has a combined annual production capacity of 5.7 million tons. This is expected to grow to 7.2 million tons by early 2025 upon the completion of the Solid Cement expansion.
“At the financial close, DMC (DMCI’s stock symbol) secured a 51 percent effective stake in CHP, while SCC (Semira’s stock symbol) and Dacon Corporation accounted for 10 percent and approximately 29 percent, respectively,” the disclosure read.
“We are excited to welcome Cemex Holdings Philippines into the DMCI Group,” said DMCI, Semirara and CHP Chairman Isidro Consunji.
“This acquisition aligns with our core expertise in engineering and construction and dedication to contributing to the infrastructure development of the Philippines,” he added.
CHP said that Cemex also indirectly disposed of its 40-percent interest in both APO Land & Quarry Corp. and Island Quarry and Aggregates Corp., which was part of the conditions set prior to closing.
DMCI board advisor, Executive Vice President and Chief Finance Officer Herbert Consunji has been appointed president and CEO of CHP.
“Our priorities are to enhance the logistics network, optimize the product mix, manage production and operating costs, and leverage on potential operating synergies within the DMCI ecosystem,” he said.
DMCI expects the acquisition to strengthen its ecosystem, given its captured markets for coal, long-term contracted power capacity, fly ash, and cement products.
CHP also disclosed that its board had approved a change in its name to Concreat Holdings Philippines Inc., subject to stockholder approval, along with an increase in number of directors to 9 from 8.
On Tuesday, DMCI shares edged up by 2 centavos, or 0.19 percent, to P10.80 each and Semirara’s gained 1.10 percent, or 35 centavos, to P32.30. CHP, however, saw a 5-centavo, or 2.65-percent drop, to P1.84.
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