Cemex to issue new shares for dividend payment

Cemex to issue new shares for dividend payment
Published: 17 April 2009

Cemex plans to issue up to 1 billion new shares that analysts say will finance a dividend payment of around 0.30 pesos per share.

Cemex, which is struggling with a huge debt amid the global financial crisis , has asked the National Banking and Securities Commission for permission to issue the shares in a document posted on the commission’s website Wednesday night.

Under the plan , Cemex, which holds its annual shareholders meeting on April 23, would give out a new CPO share for every 25 shares held.

"Considering today’s price plus the 20 per cent discount they (Cemex) usually make to attract subscribers, multiplied by the number of CPOs, it gives around 30 centavos per CPO," said Carlos Hermosillo, an analyst at Vector brokerage.