MANILA, Philippines — Cemex Holdings Philippines Inc. (CHP) has obtained the green light from its shareholders to amend its articles of incorporation as part of a plan to raise funds.
CHP earlier approved the sale of as much as $250 million in new shares to existing shareholders, a move that reflects market participants continued optimism in the company.
“The rationale for the amendment is for the ability to raise equity capital including, but not limited to, a rights offering, that the corporation may undertake, subject to the final decision and approval of the board of directors,” CHP said.
The company is looking at raising up to $250 million to allow it to improve its capital structure, fully fund the ongoing expansion of the Solid Cement plant and provide balance sheet flexibility.
“This amendment is a result of the evaluation of different funding options for the company.
“Following this capital raising exercise, any unissued shares will be kept in the form of authorized but unissued share capital and the corporation currently has no plans for any further fundraising,” CHP said.
CHP hopes to bring the Solid Cement plant on line by the fourth quarter of 2020.
Despite a challenging business environment for the cement industry, CHP maintains a positive outlook on the industry and the expansion is expected to allow CHP to maintain its position in a market that CHP continues to believe has a long-term favorable demand outlook.