Cemex plans to issue 750m shares

Cemex plans to issue 750m shares
Published: 29 March 2010

Cemex said on Friday it will seek shareholder approval to issue 750 million shares, reports Reuters.

Cemex will make its proposal at the annual shareholders meeting on April 29, the company said in a filing to the Mexican stock exchange.

It is not clear if the shares were linked to an earlier debt sale or would raise new capital.

Cemex last week sold US$650m bonds convertible into American Depositary Shares due in 2015. More share sales could hit Cemex’s already battered share price as they dilute value.

The company is trying to raise capital and extend its debt repayment obligations as it struggles with weak US and European cement sales and a heavy debt load after buying Australia’s Rinker in 2007.