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Cemex confirms change to Philippines operations

Cemex has confirmed its agreement to divest its operations in the Philippines as part of its “portfolio rebalancing strategy”.

The company’s subsidiary, Cemex Asia B.V., has signed the deal with DACON Corporation, DMCI Holdings, Inc. and Semirara Mining & Power Corporation. 

According to the public statement, the assets to be sold by Cemex Asia B.V. consist of a: 

  1. 100% equity interest in Cemex Asian South East Corporation, which owns approximately 89% of Cemex Holdings Philippines, Inc. (“CHP”), which is listed on the Philippine Stock Exchange, Inc., for a purchase price resulting from deducting from an enterprise value of US$660 million the net debt and the 10.14 per cent 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; and 
  1. 40 per cent 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 per cent of an aggregate enterprise value of US$140 million. 

“Pending the closing of the transaction, Cemex’s operations and business in the Philippines will continue in the ordinary course attending to all clients, suppliers, and other stakeholders,” Cemex said in a statement. 

“Proceeds from this 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 company expects the transaction to close before the end of 2024. It is subject to regulatory closing conditions including approval from the Philippine Competition Commission. 

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