CEMEX divests assets in Philippines

CEMEX has announced that its subsidiary, CEMEX Asia BV, has signed an agreement with DACON Corp, DMCI Holdings Inc and Seminara Mining and Power Corp for the sale of its operations and assets in the Philippines. Once closed, this transaction will further advance CEMEX’s portfolio rebalancing strategy. 

The assets to be sold by CEMEX Asia BV include 100 per cent equity interest in CEMEX Asian South East Corp, which owns approximately 89 per cent of CEMEX Holdings Philippines Inc (CHP). CHP is the owner of CEMEX’s main operating subsidiaries in the Philippines, APO Cement Corp and Solid Cement Corp. According to CEMEX, the purchase price results from deducting from an enterprise value of US$660m the net debt and the 10.14 per cent minority interest in CHP. 

Also included in the deal is the sale of a 40 per cent indirect equity interest in each of APO Land and Quarry Corp and Island Quarry and Aggregates Corp, for a purchase price to be paid to CEMEX of 40 per cent of an aggregate enterprise value of US$140m. 

CEMEX expects to finalise this transaction before the end of 2024, subject to the satisfaction of closing conditions, including, but not limited to, the approval by the Philippine Competition Commission and the fulfilment of any mandatory tender offer requirement by the purchasers to the shareholders of CHP, including the approximate 10.14 per cent minority interest owned by third parties in CHP.

According to CEMEX, 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.