Put option exercised on Cemex's Colombia IPO

Put option exercised on Cemex's Colombia IPO
Published: 13 December 2012

Cemex's Latin American subsidiary Cemex Latam Holdings (CLH) will buy back the overallotment portion of its 15 November IPO.

The subsidiary will buy the 22.2 million shares included in a put option at US$6.75 each and hold those shares in treasury, Cemex said in a statement. The purchase amounts to around US$150m.

Cemex Latam raised about US$1.15bn from last month's share offering via the sale of just over 170 million shares.

Of the total shares, 148.2 million were sold in a public offering to investors in Colombia and in a private placement to eligible investors outside Colombia.

The shares Cemex Latam is repurchasing represent 13 per cent of the shares from the initial offering and the entire put option, Cemex said.  The subsidiary will use cash proceeds from its November offering to cover the purchase, Cemex said.

Following the buyback Cemex España will own 73.35 per cent of CLH's outstanding common shares, excluding shares held in treasury.