Cemex to Divest Operations in Philippines for $306M

The company expects to finalize the transaction before year-end 2024.

Kristen Kazarian, Managing Editor

April 26, 2024

2 Min Read
Cemex Sells off Philippines Operations
Cemex’s operations and business in the Philippines will continue attending to all clients, suppliers, and other stakeholders.Fons Heijnsbroek / Unsplash

Cemex subsidiary, Cemex Asia B.V., has signed an agreement with DACON Corp., DMCI Holdings Inc. and Semirara Mining & Power Corp. for the sale of its operations and assets in the Philippines. Once closed, the divestment will further advance Cemex’s portfolio rebalancing strategy.

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% minority interest in CHP. CHP is the owner of Cemex’s main operating subsidiaries in the Philippines, APO Cement Corp. and Solid Cement Corp., which are engaged in the production, sale, and distribution of cement and other buildings materials in the Philippines.

  2. 40% 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% of an aggregate enterprise value of US $140 million.

Cemex expects to finalize the transaction before year-end 2024, subject to the satisfaction of closing conditions, including, but not limited to, the approval by the Philippine Competition Commission and the fulfillment of any mandatory tender offer requirement by the purchasers to the shareholders of CHP, including the approximate 10.14% minority interest owned by third parties in CHP.

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.

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.

A few weeks ago, the sustainable building materials manufacturer secured a refinancing agreement to extend the final maturity of an existing €450 million Term Loan to 2029 and will increase facility size by €300 million through a new Revolving Credit Facility maturing in 2028. Six new lenders joined the syndicated credit agreement, supporting Cemex’s sustainability-linked facility.

About the Author(s)

Kristen Kazarian

Managing Editor

Kristen Kazarian has been a writer and editor for more than three decades. She has worked at several consumer magazines and B2B publications in the fields of food and beverage, packaging, processing, women's interest, local news, health and nutrition, fashion and beauty, automotive, and computers.

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