The Consunji Group has expressed its commitment to keep cement maker Cemex Holdings Philippines Inc. (CHP) listed on the Philippine Stock Exchange after its recent $305.6 million acquisition.
Tycoon Isidro Consunji confirmed that they have no plans to delist CHP following the acquisition. Last week, the Consunji Group, through DMCI Holdings Inc., Dacon Corp., and Semirara Mining and Power Corp. (SMPC), signed a share purchase agreement with CEMEX Asia B.V. to acquire its entire holding of 42.14 million common shares in Cemex Asian South East Corp. (CASEC), the majority owner of CHP with an 89.86 percent equity interest.
DMCI will acquire 56.75 percent of CASEC, Dacon will secure 32.12 percent, and SMPC will purchase the remaining 11.13 percent. The transaction involves a mandatory tender offer of the shares of CHP held by its minority shareholders, amounting to 10.14 percent of the total issued and outstanding capital stock of CHP.
China Bank Capital Corp. managing director Juan Paolo Colet noted that the potential delisting of CHP would depend on the result of the mandatory tender offer. With the current public float just slightly above the minimum requirement of 10 percent, Colet suggested that many shareholders might consider tendering their shares to avoid the risk of being stuck.
The acquisition of CASEC is seen as a strategic move for the Consunji Group, as it adds cement manufacturing to its diversified investment portfolio which includes construction, real estate, coal and nickel mining, power generation, and water distribution. SMPC, on the other hand, will benefit from the acquisition by gaining access to a new market for its products and boosting its coal sales to one of the largest cement manufacturers in the Philippines.
CHP is known for producing and selling cement and other building materials under the Island, Rizal, and APO brands, catering to different regions in the Philippines.
